Which of the following best describes the concept of elasticity in cloud computing?

Elasticity in cloud computing refers to the capability of a cloud system to automatically adjust the amount of computational resources allocated based on the current load and demand. This means that as user demand fluctuates—whether it spikes during peak usage times or dips during quieter periods—the cloud environment can scale resources up or down dynamically. This ensures optimal performance and cost-efficiency, as users only pay for the resources they utilize at any given moment.

For example, if a web application experiences a sudden surge in traffic, an elastic cloud service can automatically provision more virtual machines to handle the increased load, thus maintaining performance levels. Conversely, when the demand decreases, it can scale back resources to reduce costs. This automatic nature of resource management is what sets elasticity apart from mere scalability, which may require manual intervention.