Economics is the understanding of resource allocation and consumption. Simply stated, the study of supply and demand.

Elasticity in Economics


One of the terms synonymous with the field of economics is ‘Elasticity’. The term refers to the change in either the demand or supply (the other terms synonymous with economics) curve when there is a change in the price. In general, if the price increases a little for consumer goods and the consumers decrease their consumption in significant volume, the goods are considered elastic.