PRICE ELASTICITY Definition

Bookmark and Share

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.

Learn new Accounting Terms

SIPS is an acronym for Secure Internet Payment Service (e.g., Cybercash).

NOTARY PUBLIC is a certifier of legal documents, i.e., somebody who is legally authorized to certify the authenticity of signatures and documents. Also called notary.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.