Elastic Price Elasticity Score

A Elastic Price Elasticity Score is a negative price elasticity that is smaller than -1.

• Context:
  • It can (typically) indicate that:
    • Product Demand increases quickly relative to a Price Decrease.
    • Product Demand decreases quickly relative to a Price Increase.
  • …
• Example(s):
  • the price elasticity of bread
  • Elastic Wage Labor Elasticity.
  • …
• Counter-Example(s):
  • Price Inelastic Demand Value, such as for gasoline.
  • Inelastic Product Demand.
• See: Positive Price Elasticity, Price Elasticity Curve.

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References

2013

• http://www.investopedia.com/terms/e/inelastic.asp
  • By way of contrast, an elastic good or service is one for which a 1% price change causes more than a 1% change in the quantity demanded or supplied. Most goods and services are elastic because they are not unique, but have substitutes. If the price of a plane ticket increases, fewer people will fly and more people will stay home or drive. A good would need to have numerous substitutes to experience perfectly elastic demand.

• http://www.economicshelp.org/blog/7019/economics/examples-of-elasticity/
  • QUOTE: Price elastic – a change in price causes a bigger % change in demand.

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