Answer: The statement you've provided describes the economic concept of elasticity. Elasticity is a measure of how responsive the quantity demanded or supplied of a good or service is to a change in its price. It measures the responsiveness of the consumers' and producers' behaviors to changes in price, in other words, how sensitive the consumers or producers are to changes in the good or service prices.
There are different types of elasticity, such as price elasticity of demand and price elasticity of supply. Price elasticity of demand measures how much the quantity demanded of a good changes in response to a change in its price. If a good has a high price elasticity of demand, then a small change in its price will result in a large change in the quantity demanded of the good. On the other hand, price elasticity of supply measures how much the quantity supplied of a good changes in response to a change in its price. A good with a high price elasticity of supply will see a large increase in the quantity supplied in response to a small price increase.
Elasticity is a very important concept in economics because it helps to understand how consumers and producers will react to changes in prices and how it would affect the overall economy.
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