Economists use elasticity of demand to gauge how responsive consumers are to changes in price and income, but investors can also use elasticity of demand to help make more informed investing decisions ...

A customer normally buys a cup of coffee and one doughnut on the way to work in the morning. However, for one day only, the coffee shop has dropped the price of doughnuts by 30 percent. The customer ...

One, tackle by price; the other, tackle with data. Price elasticity plays an important role in business. If a product price is raised or lowered and demand changes little, it is price inelastic. If ...

Price elasticity of demand is a measure of the degree to which changes in a product’s price affect how much of that product consumers purchase. At $1.99, you might impulse buy a bottle of Coke. At ...

In addition to the often cited factors, we believe price inelastic behavior is keeping inflation from dropping faster. We discuss what may be causing price inelasticity and why it might reverse. As so ...

Elasticity is responsiveness. It is a measure of change to one thing when something that affects it changes. When thinking about elasticity as it relates to business management, it is helpful to think ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Mary Hall is a editor for Investopedia's Advisor Insights, in addition to being the editor of several books and doctoral papers. Mary received her bachelor's in English from Kent State University with ...