PRICE ELASTICITY Definition

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PRICE ELASTICITY is the degree to which customers respond to price changes (calculation: % change in quantity divided by % change in price). A value greater than 1 = customers exhibit a good sensitivity to price. A value less than 1 = customers are insensitive to price. Price Elasticity is if a small change in price is accompanied by a large change in quantity demanded, the product is said to be elastic (or responsive to price changes). A product is inelastic if a large change in price is accompanied by a small amount of change in demand.

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LIEN is the right to take anothers property if an obligation is not discharged.

QUANTATIVE INFORMATION is information relating to, or expressible in, terms of quantity.

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