Price elasticities

Definition:

The percentage change in quantity divided by a percentage change in the price. Answers the question: How much will the demand for my product decrease if I raise prices by 10%?

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Own foreign offices

U.S. reporting institutions' parent organizations, branches, and/or majority owned subsidiaries located outside the United States.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio