ColinW said:
I've always thought, probably wrongly, that the repulsion in an elastic collision was due to dipole moments set up when the electrons are pushed slightly out of their normal state.
No, induced and permanent atomic dipole interactions (as well as quadrupoles, etc.) are the basis for the family of Van der Waals forces, and they are dominantly attractive, not repulsive. You can draw a little diagram to convince yourself of this (the negative electron of one atom slightly repels the negative electron of the other atom to the other side of the atom, leaving the positive nucleus slightly bare, and opposites attract). The Pauli exclusion principle keeps an atom/molecule from collapsing in on itself. Most solids are giant crystal molecules. When an object comes in contact with another object, their surface atoms start to overlap, but Pauli won't allow this, so the molecules start to collapse, but Pauli won't allow this either, so they spring back, pushing back on the first atom, repelling the object.
Think of an axe hitting a piece of wood. If the axe has enough energy, it can cut through the wood, but it must split bonds and push away the atoms to do so, which requires energy. The axe can't just slip through the so-called "empty space" inside the atoms. If the axe does not have enough energy to split bonds and push the atoms apart, it will bounce back. You can think of the molecular bonds as springs. When an object strikes another object, it is like it is trying to push the molecules apart so it can slip through. It succeeds a little, but then the "springs" pull the molecules back together, pushing the object back away. When two objects strike, they actually deform and then spring back. If the energy is high enough, the "springs" will be stretched until broken, and atoms will go flying everywhere. This is what happens when you throw a rock through a window. So a combination of Pauli exclusion principle an inter-/intra- molecular attractive binding forces within the object lead to a net repulsion when objects collide.
It's analogous to how helium balloons float. Gravity only pulls things down, so why do balloons go up? Because gravity pulls the equivalent volume of air harder (because it is more massive) than the helium balloon. The air is pulled to where the balloon starts. They can't both occupy the same spot, so the air pushes the lighter balloon upwards out of the way. In this way the combination of an attractive force (gravity) and an exclusion principle leads to a net repulsion of the balloon from the earth.