Elasticity of Demand and Supply:

From the study of the determination of price and output, it was explained that the quantity demanded of a commodity is affected by several factors, some of which are changes in a commodity's own price, prices of other related commodities (substitutes and complements), consumer income etc. In the same vain, a change in the market price of a commodity affects thequantity supplied of a commodity. Elasticity measures the extend or degree to which the quantity demanded or supplied is affected by a change in any of these factors. Elasticity is explained differently in economics from its general use. It is the degree of responsiveness of one economic variable to a change in another.