Price Elasticity
Barron's Business Dictionary:
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Price Elasticity
Relationship between the total amount spent on a good in the market and the price of the good. It is the percentage change in quantity divided by the percentage change in price. If a price decrease results in larger total expenditure (and vice versa), the good is price elastic. If a price decrease results in less total expenditure (or vice versa), the good is price inelastic.
| Price Discrimination, Preventive Maintenance, Pretax Rate of Return | |
| Price Index, Price Leader (Leadership), Price Level |
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Price Elasticity
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Barron's Business Dictionary
Dictionary of Business Terms. Copyright © 2007 by Barron's Educational Series, Inc. All rights reserved.
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Mentioned in
Unitary Elasticity
(business term)
Price elasticity of demand
(definition)
Undiscounted
(business term)
elasticity
(in marketing)
» More