Elastic Price Elasticity Score
(Redirected from price elastic demand)
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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.
- …
- It can (typically) indicate that:
- 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.
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.