The amount of change in demand for a good or service when its price changes. An example is a sales increase coinciding with a drop in prices and sales decrease coinciding with a rise in prices. Appliances, cars, confectionery and other non-essentials show elasticity of demand . Most necessities , such as food, medicine, basic clothing have little elasticity of demand, as demand changes little with changes in price. See also cross price elasticity of demand
Black’s Law Online Dictionary
