a measure of the sensitivity of supply and demand to changes in price. If price elasticity is low, a large change in price will lead to a small change in supply.
the relationship between the price of a product and the quantity bought by consumers.
A measure of the responsiveness of the demand for a product or service to a change in the price of that product or service. Products with an inelastic demand show relatively little changes in demand to relatively large changes in price (for example, the necessities of life) - demand is therefore not significantly price sensitive. Products with an elastic demand show relatively large changes in demand to relatively small changes in price.