As a small-business owner, you need to know how changes in price can affect your income. While you may guess that lowering prices will increase sales, you need to confirm this hunch with a total ...

Demand elasticity is a phenomenon where demand for a specific good or service changes depending on factors such as how it is priced, whether alternatives are available or local income trends.

The price elasticity of demand is a crucial concept in investing. It helps investors understand whether a company has pricing power or not. Can it boost profits by raising prices, leading to increased ...

Economists use elasticity of demand to gauge how responsive consumers are to changes in price and income, but investors can also use elasticity of demand to help make more informed investing decisions ...

Brian Beers is a digital editor, writer, Emmy-nominated producer, and content expert with 15+ years of experience writing about corporate finance & accounting, fundamental analysis, and investing.

Elasticity is responsiveness. It is a measure of change to one thing when something that affects it changes. When thinking about elasticity as it relates to business management, it is helpful to think ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Robert Kelly is managing director of XTS ...

Supply and demand is a fundamental factor in shaping the character of the marketplace, for it is understood as the principal determinant in establishing the cost of goods and services. The ...

China sales analysis demonstrates Tesla, Inc. price elasticity of demand, but price cuts are a two-edged sword. Tesla can no longer be assured of capturing demand created by price cuts, as it is no ...

The degree of buyers' responsiveness to price changes. Elasticity is measured as the percent change in quantity divided by the percent change in price. A large value (greater than 1) of elasticity ...