In economics, “elastic” is a term employed to characterize the degree of responsiveness exhibited by buyers and sellers when there is a change in the price of a good or service. Elasticity measures how significantly the quantity demanded or supplied of a product changes in response to alterations in its price. An elastic market signifies that buyers or sellers are highly responsive to price changes, resulting in substantial fluctuations in quantity when prices shift. This concept is essential in understanding consumer behavior, pricing strategies, and market dynamics.
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