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Price Elasticity

Economics Markets and Financial TheoryUpdated 05 Nov 2026

Price elasticity measures how strongly the quantity demanded or supplied of a good responds to a change in its price, usually as the percentage change in quantity divided by the percentage change in price. It is explained in full, with the formula and worked examples, on the Elasticity (Economics) page.

When demand barely moves it is inelastic, as with fuel or basic food; when it moves a lot it is elastic. See also supply and demand.

Last updated 05 Nov 2026