One of the mysteries of the English language finally explained.
A measure of the effect of a price change or a change in the quantity supplied on the demand for a product or service.
- ‘If the company assumes that price elasticity of demand is close to perfectly inelastic, it can charge what it likes.’
- ‘On the demand side, agricultural products have a very low price elasticity.’
- ‘The telecommunications sector exhibits strong price elasticity of demand.’
- ‘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.’
- ‘For instance, when you're selling spare parts one at a time, there's a lot of price elasticity there; customers need these parts right away if their machines are down.’
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