Elasticity definition is different in different disciplines like engineering, biology, math, and economics. J.S Mill and Cournot discussed the concept of elasticity of demand. However, it was defined first time by Dr. Marshall as: “Elasticity of Demand may be defined as the percentage change in the quantity demanded divided by the percentage in the price.”
Later on, different economists designed different definitions of elasticities in economics. You can find some terms like the elasticity of demand, the elasticity of supply, price elasticity, income elasticity, cross elasticity and then different shades under each of them. Instead of making things complicated for us, let’s go to an elasticity definition which seems very comprehensive regarding various elements of elasticity, demand, and supply.
Elasticity definition built by William Boyes & Michael Melvin in “Economics” fits this category as:
“By definition elasticity is the measure of the responsiveness of quantity demanded or quantity supplied to a change in price or some other important variable. By ‘responsiveness’ we mean ‘how much quantity demanded or quantity supplied changes with respect to a change in something else.”
Another definition of elasticity seems closer. But it restricts itself to the price elasticity.
“Price elasticity refers to customers’ responsiveness or sensitivity to change in price. A more precise definition defines elasticity as the relative impact on the demand for a product, given specific increase or decrease in the price charged for that purpose.”
(“Marketing Strategy”, O.C. Ferrel & Michael D. Hartline)
Some other big names define elasticity of demand as under:
We can find dozens of websites offering elasticity definition in their own ways. A few of them go as under:
The elasticity definition made by Robert S. Pindyck & Daniel L. Rubinfeld in their “Microeconomics” contains basic concept and elements of elasticity. They define it as:
“An elasticity measures of sensitivity of one variable to another. Specifically, it is a number that tells us the percentage change that will occur in one variable in response to a 1-percent increase in another variable.”Exceptions to Demand and Supply
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Under interpretation of elasticity coefficients there is price elasticity of demand and income elasticity of demand but i don't really understand it very …