hey i wanted to ask about Elasticity, what does it mean? and what is its purpose?, thank you
Elasticity is the measurement of how responsive an economic variable is to a change in another. For example: Elasticity can be quantified as the ratio of the %change in one variable to the % change in another variable, when the latter variable has a causal influence on the former. A more precise definition is given in terms of differential calculus. It is a tool for measuring the responsiveness of one variable to another.