Origin

Alfred Marshall (1842-1924), the famous Victorian economist made some important contributions to the field of economics. One of Marshall's important contribution is the introduction of the demand supply analysis with the cross-diagram as we know it today. The refinement and formalization of the concept of elasticity is also attributed to Marshall.

In his Principles of Economics, Marshall writes, "The elasticity (or responsiveness) of demand in a market is great or small according as the amount demanded increases much or little for a given fall in price, and diminishes much or little for a given rise in price" (Principles of Economics, Book III, Chapter IV). He then goes on to give various examples of elastic and inelastic goods in the two social classes that he considers - the rich and the poor.

Portrait of Alfred Marshall
Artist : Vignir Jóhannsson