In theory, booms in elastic markets do not last for long because as new housing becomes available it puts pressure on prices, puncturing expectations of further appreciation and popping the bubble.

ECONOMIST: When the roof fell in

Even if our basic theory is that economy is elastic in response to nominal stress and plastic in response to real stress, a sudden change in rigidity combined with a large nominal shock could cause a very large plastic deformation in the economy.

FORBES: NGDP in the Long Run and Economic Plasticity

He patiently explains that economic theory tells us that discriminatory pricing by a monopolistic content provider, in which inelastic customers pay more than elastic ones, is provably more efficient than a one-size-fits-all pricing regime.

FORBES: The Use of Knowledge on the Internet