Elasticity is the ability of an application or system to handle workloads that vary by automatically increasing or reducing resources / capacity as needed. For example, a web application can scale up to handle increased traffic during peak times and scale down during periods of low activity.
Cloud providers like AWS, Azure, and Google Cloud offer services for autoscaling. Developer can define rules for adding or removing virtual machines, containers, or other resources based on metrics like CPU utilization or number incoming requests. This enables the application to handle fluctuations in traffic without manual intervention and preventing downtime due to over-loading.