"If the quantity demanded of a good changes drastically when the price changes, the good is relatively elastic."
The Elasticity of Demand is an economic theory that postulates that when nothing but the price of a certain good changes, the good responds to this change by showing "elasticity" on its demand, this is to say that the good responds directly to the price variable.
In other words, the percentage of change in the demanded quantity of the good is directly proportional to the percentage of the price that changes.
For example, if the price of a certain product raises a 10 per cent, the demand of that product will raise or fall a 10 per cent, too.
