 Elasticity of a function

The elasticity of a function measures how sensitive the output of that function is to changes in its input. In economics, for instance, elasticity is commonly used to assess how quantity demanded or supplied responds to changes in price. Mathematically, the elasticity \(E\) of a function \(f(x)\) with respect to \(x\) is defined as the percentage change in the output \(f(x)\) divided by the percentage change in the input \(x\).