elastic demand when the elasticity of demand is greater than one, indicating a high responsiveness of quantity

demanded or supplied to changes in price

elastic supply when the elasticity of either supply is greater than one, indicating a high responsiveness of

quantity demanded or supplied to changes in price

elasticity an economics concept that measures responsiveness of one variable to changes in another variable

elasticity of savings the percentage change in the quantity of savings divided by the percentage change in

interest rates

inelastic demand when the elasticity of demand is less than one, indicating that a 1 percent increase in price

paid by the consumer leads to less than a 1 percent change in purchases (and vice versa); this indicates a

low responsiveness by consumers to price changes

inelastic supply when the elasticity of supply is less than one, indicating that a 1 percent increase in price paid
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