Price Elasticities: how to use them to steer pricing decisions
ScanmarQED
OCTOBER 3, 2023
What is price elasticity? Basic demand and supply theory tells us that demand will go down when prices go up. If you increase prices by 10%, will demand decrease by 10%? The relationship (correlation) between the price change and the following change in volume sales is what can be expressed in a number: price elasticity.
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