L’ price elasticity is a measure used in economics to evaluate the responsiveness of demand for a product or service to a variation in its price. If demand is highly responsive to price changes, the product is considered to have elastic demand, meaning a small change in price leads to a significant change in demand. In contrast, if demand is less responsive to price changes, the product is considered to have inelastic demand, where price changes have a minimal impact on demand.
In contrast, if demand is less responsive to price changes, the product is considered to have inelastic demand, where price changes have a minimal impact on demand.
It enables us to make informed decisions on pricing and market strategy.
