Wikipedia defines economic elasticity as follows:
In economics, elasticity is the ratio of the proportionate change in one variable with respect to proportional change in another variable, such as the responsiveness of the price of a commodity to changes in market demand or visa-versa. In terms of elasticity, a market or good can be described as elastic or inelastic as a means of describing its responsiveness to the proportionate change in another quantity.
But economies also have physical elasticity properties. I was reminded of this reading Why Doesn’t Spaghetti Break in Half? Economies can bend and spring back, and when they break, it’s not a simple, single fracture.
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