Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Price elasticity of supply measures how responsive supply is to price changes.

Elasticity in the financial sense is a term used to describe the degree to which a change in one variable leads to a change in another variable—how a price increase or decrease affects sales. If, for ...

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 ...

In order for a small-business order to price her products or services correctly, she must be able to understand what impact that price will have on demand. In some cases, demand will rise or fall with ...

The challenge is wrapping your head around the difference between elasticity and inelasticity of demand. Elasticity of demand measures how much the demand for a product or service changes relative to ...

Elastic products, like air travel, see demand vary with price changes, affecting investment volatility. Inelastic goods, such as insulin, maintain steady demand despite price fluctuations, offering ...

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 ...

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 ...

Price elasticity measures how demand changes with price adjustments; key for investment decisions. Investors should focus on companies developing inelastic products for greater pricing power.