Derik Hammer explains what Azure SQL Database Elastic Pools do:
Azure SQL Database Elastic Pools are a mechanism for grouping your Azure SQL Databases together into a shared resource pool. Imagine for a moment that you had a physical server on premise. On that server, you have a single SQL Server instance and a single database. This example is similar to how Azure SQL Database works. You have a fixed amount of resources and you pay for those resources, even when you are not using them.
An Elastic Pool is analogous to that same server and instance, instead you add several databases to the instance. The databases will share the same resource pool which can be cheaper than paying for separate sets of resources, as long as your databases’ peak usage times do not align with each other.
Read on to see how you can potentially save money on databases using an elastic pool instead of spinning up the databases independently.