In retail, the elasticity coefficient refers to a measure of the responsiveness of demand for a product to changes in its price. It is used to assess the responsiveness of consumers or producers toprice changes. A high coefficient of elasticity indicates high reactivity. This means that small price variations lead to significant changes in demand or supply.
If it is low, it indicates limited reactivity. This means that price changes have a relatively minimal impact on demand or supply. His knowledge is invaluable to companies in determining their pricing strategies. It enables us to assess the impact of price variations and make informed market decisions.
