Elastic

A situation in which the supply and demand for a good or service can vary significantly due to the price. The elasticity of a good or service can vary according to the amount of close substitutes, its relative cost and the amount of time that has elapsed since the price change occurred.

Companies that operate in very fierce and competitive industries provide goods or services that are very elastic because these companies tend to be price takers. For example, the airline industry is very elastic because all airlines offer a very similar service (getting passengers from point A to point B). For the most part, an airline company can't have prices that are significantly different from those of its competitors because this can result a huge loss of business to competitors.


Investment dictionary. . 2012.

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  • elastic — adj 1 Elastic, resilient, springy, flexible, supple are comparable when they mean able to endure strain (as extension, compression, twisting, or bending) without being permanently affected or injured. Elastic and resilient are both general and… …   New Dictionary of Synonyms

  • Elastic — E*las tic ([ e]*l[a^]s t[i^]k), a. [Formed fr. Gr. elay nein to drive; prob. akin to L. alacer lively, brisk, and E. alacrity: cf. F. [ e]lastique.] 1. Springing back; having a power or inherent property of returning to the form from which a… …   The Collaborative International Dictionary of English

  • elastic — ELÁSTIC, Ă, elastici, ce, adj., s.n. I. adj. 1. (Despre unele obiecte) Care are proprietatea de a şi modifica forma şi dimensiunile sub acţiunea unei forţe exterioare şi de a reveni de la sine la forma şi dimensiunile iniţiale după încetarea… …   Dicționar Român

  • Elastic — may refer to:*Elastic collision, a term describing collisions in which kinetic energy is conserved *Elastic deformations, a term describing reversible deformations of materials *Elastic, a colloquial noun for certain kinds of elastomers and… …   Wikipedia

  • elastic — [ē las′tik, ilas′tik] adj. [ModL elasticus < LGr elastikos < Gr elaunein, to set in motion, beat out < IE base * el , to drive, move, go > ? LANE1] 1. able to spring back to its original size, shape, or position after being stretched …   English World dictionary

  • elastic — UK US /ɪˈlæstɪk/ adjective ► ECONOMICS relating to a situation in which the number of products sold changes in relation to the product s price: »We re seeing the elastic effect of lower component prices encouraging demand for PCs. »Your problem… …   Financial and business terms

  • Elastic — E*las tic, n. An elastic woven fabric, as a belt, braces or suspenders, etc., made in part of India rubber. [Colloq.] [1913 Webster] …   The Collaborative International Dictionary of English

  • elastic — [adj1] pliant, rubbery adaptable, bouncy, buoyant, ductile, extendible, extensible, flexible, irrepressible, limber, lithe, malleable, moldable, plastic, pliable, resilient, rubberlike, springy, stretchable, stretchy, supple, tempered, yielding;… …   New thesaurus

  • elastic — index flexible, malleable, pliable, pliant, resilient, sequacious, tractable, volatile, yielding …   Law dictionary

  • elastic — (adj.) 1650s, coined in French (1650s) as a scientific term to describe gases, from Mod.L. elasticus, from Gk. elastos ductile, flexible, related to elaunein to strike, beat out, of uncertain origin. Applied to solids from 1670s. Figurative use… …   Etymology dictionary

  • elastic — ► ADJECTIVE 1) able to resume normal shape spontaneously after being stretched or squeezed. 2) flexible and adaptable. ► NOUN ▪ cord, tape, or fabric which returns to its original length or shape after being stretched. DERIVATIVES elastically… …   English terms dictionary

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