Microsoft Certified: Azure Fundamentals (AZ-900) Practice Exam 2025 - Free AZ-900 Practice Questions and Study Guide

The correct term that describes the ability to scale applications and services in Azure is "Elasticity." Elasticity refers to the dynamic allocation of resources as workload demands change, allowing applications to automatically scale up or down in response to varying levels of traffic or usage. This capability enables organizations to effectively manage costs and maintain performance without manual intervention.

While "Scalability" is often used in similar contexts, it generally refers to the capability of a system to handle a growing amount of work or its potential to accommodate growth. In contrast, elasticity emphasizes the automatic and real-time response to current resource demands, making it a more precise term in the context of cloud computing.

"Capacity Management" relates to planning and managing capacity resources to meet future demands, while "Performance Optimization" focuses on enhancing the performance of applications. Neither of these terms encompasses the dynamic scaling feature that elasticity provides in Azure environments.