In mathematics, the elasticity or point elasticity of a positive differentiable function f of a positive

variable (positive input, positive output)

[1]
at point a is defined as
[2]



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.
Contents
1 Rules
2 Estimating point elasticities
3 Semi-elasticity
4 See also
5 References
Rules[edit]
Rules for finding the elasticity of products and quotients are simpler than those for
derivatives. Let f, g be differentiable. Then
[2]





The derivative can be expressed in terms of elasticity as

Let a and b be constants. Then

,
.
Estimating point elasticities[edit]
In economics, the price elasticity of demand refers to
the elasticity of a demand function Q(P), and can be
expressed as (dQ/dP)/(Q(P)/P) or the ratio of the value
of the marginal function (dQ/dP) to the value of the
average function (Q(P)/P). This relationship provides
an easy way of determining whether a demand curve
is elastic or inelastic at a particular point. First,
suppose one follows the usual convention in
mathematics of plotting the independent variable (P)
horizontally and the dependent variable (Q) vertically.
Then the slope of a line tangent to the curve at that
point is the value of the marginal function at that point.
The slope of a ray drawn from the origin through the
point is the value of the average function. If the
absolute value of the slope of the tangent is greater
than the slope of the ray then the function is elastic at
the point; if the slope of the secant is greater than the
absolute value of the slope of the tangent then the
curve is inelastic at the point.
[3]
If the tangent line is
extended to the horizontal axis the problem is simply a
matter of comparing angles formed by the lines and
the horizontal axis. If the marginal angle is greater than
the average angle then the function is elastic at the
point; if the marginal angle is less than the average
angle then the function is inelastic at that point. If,
however, one follows the convention adopted by
economists and plots the independent variable P on
the vertical axis and the dependent variable Q on the
horizontal axis, then the opposite rules would apply.
The same graphical procedure can also be applied to
a supply function or other functions.
Semi-elasticity[edit]
A semi-elasticity (or semielasticity) gives the
percentage change in f(x) in terms of a change (not
percentage-wise) of x. Algebraically, the semi-elasticity
S of a function f at point xis
[4][5]


An example of semi-elasticity is modified
duration in bond trading.
The term "semi-elasticity" is also sometimes used
for the change if f(x) in terms of a percentage
change in x
[6]
which would be