Price Elasticity Of Demand
A measure of the responsiveness of the quantity demanded of a good to a change in its price. It is calculated as:
Investopedia Says:
If a small change in price is accompanied by a large change in quantity demanded, the product is said to be elastic (or responsive to price changes). The opposite also applies, a product is inelastic if a large change in price is accompanied by a small amount of change in demand. Related Terms:
Economics
Elastic
Income Elasticity Of Demand
Inelastic
Pricing Power
Quantity Demanded
Tax Incidence
Total Revenue Test |