Elasticity refers to the ability of a material or object to return to its original shape after being stretched or compressed. This property is crucial in various fields, including physics and engineering, as it helps determine how materials behave under different forces. For example, rubber bands exhibit high elasticity, allowing them to stretch significantly and then return to their initial form. In economics, elasticity measures how the quantity demanded or supplied of a good changes in response to price changes. The concept helps businesses and policymakers understand consumer behavior and market dynamics. For instance, if the price of gasoline rises, the demand may decrease, indicating price elasticity.