elasticity coefficients

Elasticity coefficients measure how sensitive one variable is to changes in another. In economics, for example, price elasticity of demand indicates how much the quantity demanded of a product changes when its price changes. A high elasticity means consumers are very responsive to price changes, while low elasticity means they are not. Similarly, income elasticity measures how demand shifts with changes in consumer income. In essence, these coefficients help us understand the relationships and impacts between different economic factors, allowing businesses and policymakers to make informed decisions.