Price Elasticity Research

Price elasticity research examines how the demand for a product or service changes in response to price changes. If demand decreases significantly when prices rise, the product is considered "elastic"; for example, luxury items. Conversely, if demand remains stable despite price changes, the product is "inelastic," like essential goods such as medicine. Understanding price elasticity helps businesses set prices, forecast sales, and assess the impact of market conditions on consumer behavior, ultimately informing their strategies to maximize profits and remain competitive.