Elasticity is an economic measure of the sensitivity of one economic factor to a change in another.
For example, changes in demand or supply for changes in price or changes in demand for changes in income.
If the demand for a good or service is relatively stable even when the price changes, demand is said to be inelastic and its elasticity coefficient is less than 1.0.
Elastic goods include clothing or electronics, while inelastic goods include food and prescription drugs.
Cross elasticity measures the change in demand for one good when the price of another related good changes.