Demand Elasticity Research

Demand elasticity research examines how the quantity of a product or service people want changes in response to factors like price, income, or the prices of related goods. If demand is elastic, a small price change leads to a significant change in quantity demanded. Conversely, inelastic demand means quantity demanded changes little with price changes. Understanding these concepts helps businesses and policymakers predict consumer behavior and make informed decisions about pricing, production, and market strategies. Essentially, it reveals how sensitive consumers are to changes in economic conditions.