Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Goods and services can be either elastic or inelastic. Elastic means the ...

The relationship between the supply and demand for a good (or service) and changes in price is called elasticity. Goods that are inelastic are relatively insensitive to changes in price, whereas ...

(Elasticity is also defined for income effects on demand.) Three years ago a vivid example of supply elasticity played out in labor markets. Finding workers became very difficult in 2021 and 2022 ...

Reviewed by Michael J Boyle Fact checked by Michael Rosenston Goods and services can be either elastic or inelastic. Elastic ...