Elasticity

Remember the song, "Rubberband Man"? Well, ask your parents.

Elasticity measures how responsive we are to a change in something else. Put metaphorically, if you will: being elastic means you sway when the wind blows, while being inelastic means you’re solid as a rock when the wind blows.

Sun, rain, or snow, some people will always be wearing a Hawaiian shirt and flip flops like it ain’t no thang. These freaks of nature are not very responsive with their clothing choices to changes in weather, making them inelastic to weather.

What about your average modern Joe who grabs a jacket when it’s cool out, and switches out sandals for shoes? When the weather changes a bit, so does average modern Joe’s clothing, suggesting he’s supes elastic to weather changes.

In economics, elasticity is usually used to measure changes in quantity as a result of changes in price. For example, some people might buy more of something when it’s on sale while others will remain inelastic, still buying the same amount as they would have if there was no sale. Elasticities apply to firms, too. For instance, they might hire more workers if worker supply goes up, causing wages to go down.