Definition of Price elasticity:
How consumers react to prices for goods and services.
A measure of the effect of a price change or a change in the quantity supplied on the demand for a product or service.
How to use Price elasticity in a sentence?
- Sometimes when the demand gets up you can take advantage of the price elasticity and start charging a bit more for your product.
- The price elasticity of the market was severe so we needed to seriously understand our customer to best serve and please them.
- Look for services with high fixed costs, price elasticity - meaning that consumers will typically buy more if prices drop - and the ability to be ordered over the Internet.
- The recent global economic recession produced an unusual price elasticity in many business industries requiring companies to adapt to the pressures and changes impacted by low consumer confidence.
Meaning of Price elasticity & Price elasticity Definition