Price Elasticity Studies

Price elasticity studies analyze how changes in the price of a product affect the quantity consumers buy. It measures the responsiveness or sensitivity of demand to price shifts. For example, if raising a price leads to a significant decrease in sales, the product is considered highly elastic. Conversely, if demand barely changes with price adjustments, it's inelastic. These studies help businesses set optimal prices to maximize revenue and understand consumer behavior. They are essential in strategic planning, market analysis, and pricing decisions across various industries.