In order for a small-business order to price her products or services correctly, she must be able to understand what impact that price will have on demand. In some cases, demand will rise or fall with ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Ali Hussain has a background that consists of a career in finance with large financial institutions and in journalism covering business. Ryan Eichler holds a B.S.B.A with a concentration in Finance ...

The challenge is wrapping your head around the difference between elasticity and inelasticity of demand. Elasticity of demand measures how much the demand for a product or service changes relative to ...

One, tackle by price; the other, tackle with data. Price elasticity plays an important role in business. If a product price is raised or lowered and demand changes little, it is price inelastic. If ...

A business' demand for a good is based on the price of the good. When prices rise, the business will buy less of the good. When prices drop, the business will purchase more of the good. A business' ...

Elasticity is a method of measuring the likelihood of one economic factor affecting another, such as when the price of an item affects consumer demand or when supply affects how much something costs.

Price elasticity measures how demand changes with price adjustments; key for investment decisions. Investors should focus on companies developing inelastic products for greater pricing power.

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 ...