What is the concept of elasticity in economics?

Elasticity in economics refers to the measure of how the quantity demanded or supplied of a good or service responds to changes in price or other factors. Price elasticity of demand (PED) measures how much the quantity demanded changes in response to a price change. If demand is elastic, a small change in price leads to a significant change in quantity demanded. If demand is inelastic, price changes have little effect on demand. Elasticity also applies to supply, income, and cross-price elasticity, allowing economists to assess how changes in various factors influence markets and consumer behavior.