Elasticity is a method of measuring the likelihood of one economic factor affecting another, such as when the price of an item affects consumer demand or when supply affects how much something costs.

The price elasticity of demand is a crucial concept in investing. It helps investors understand whether a company has pricing power or not. Can it boost profits by raising prices, leading to increased ...

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 ...

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 ...

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.

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.