Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
, elasticity is the measurement of how changing one economic variable affects others. For example:
- "If I lower the price of my product, how much more will I sell?"
- "If I raise the price, how much less will I sell?"
- "If we learn that a resource is becoming scarce, will people scramble to acquire it?"
In more technical terms, it is the ratio of the percentage change in one variable to the percentage change in another variable.