Elasticity is a measure of how much one’s demand for a good changes in relation to changes in its price. In particular, it measures how changes in price affect the quantity demanded or supplied of a good or service. If the quantity demanded or supplied of a good or service changes a lot when the price changes, then the good or service is said to be elastic. If the quantity demanded or supplied changes only a little when the price changes, then the goods or service is said to be inelastic. Luxury goods are often more elastic, because people are willing to forego them if their prices rise.