What does a price elasticity of -2.82 mean?
2007-08-02 06:53:16 · 3 answers · asked by Sweet Tooth 2 in Business & Finance ➔ Other - Business & Finance
The Price Elasticity of Demand (commonly known as just price elasticity) measures the rate of response of quantity demanded due to a price change. The higher the price elasticity, the more sensitive consumers are to price changes. A very high price elasticity suggests that when the price of a good goes up, consumers will buy a great deal less of it and when the price of that good goes down, consumers will buy a great deal more. A very low price elasticity implies just the opposite, that changes in price have little influence on demand.
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2007-08-03 01:49:42 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋
It refers to how many people would stop buying it if the price went up 1%. Highly elastic means that many people would stop buying it. Inelastic means everyone would still buy it. Same thing for how many more people would buy it if the price went down.
2016-04-01 11:42:11 · answer #2 · answered by Anonymous · 0⤊ 0⤋
50 years in retail, never heard that expression.
I have heard of "flexibility".
Means the price is not carved in stone.
2007-08-02 07:03:34 · answer #3 · answered by ed 7 · 0⤊ 0⤋