Elasticity alludes to the level of responsiveness in supply or request in connection to changes in cost. On the off chance that a bend is more versatile, then little changes in cost will bring about expansive changes in amount devoured. In the event that a bend is less flexible, then it will take expansive changes in cost to impact an adjustment in amount expended. Graphically, elasticity can be spoken to by the presence of the supply or request bend. A more flexible bend will be level, and a less elastic bend will tilt all the more vertically. At the point when discussing elasticity, the expression "level" alludes to bends that are even; a "compliment" flexible bend is nearer to impeccably flat.

Elasticity can be generally thought about by taking a gander at the relative steepness or levelness of a supply or request bend. Along these lines, it bodes well that the equation for ascertaining elasticity is like the recipe utilized for computing incline. Rather than relating the real costs and amounts of products, be that as it may, elasticity demonstrates the relationship between changes in cost and amount.