Elasticity Of A Function
In mathematics, the elasticity or point elasticity of a positive differentiable function f of a positive variable (positive input, positive output) at point x is defined as
or equivalently
It is thus the ratio of the relative (percentage) change in the function's output with respect to the relative change in its input, for infinitesimal changes from a point . Equivalently, it is the ratio of the infinitesimal change of the logarithm of a function with respect to the infinitesimal change of the logarithm of the argument.
The elasticity of a function is a constant if and only if the function has the form for a constant .
The elasticity at a point is the limit of the arc elasticity between two points as the separation between those two points approaches zero.
The concept of elasticity is widely used in economics; see elasticity (economics) for details.
Read more about Elasticity Of A Function: Rules, Estimating Point Elasticities, Semi-elasticity
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