Elastic refers to a type of demand where changes in price cause relatively larger changes in quantity demanded. Inelastic demand means that changes in price have little effect on quantity demanded.
Related terms
Perfectly elastic demand: Perfectly elastic demand occurs when any increase in price leads to an infinitely large decrease in quantity demanded.
Unitary elastic demand: Unitary elastic demand refers to a situation where the percentage change in quantity demanded is equal to the percentage change in price.
Inelastic supply: Inelastic supply means that changes in price have little effect on the quantity supplied.