Elasticities - an Unnecessary Evil | Free Infographic

Price is a crucial factor in profitability. Often, increasing prices—if demand remains stable—can be more profitable than boosting sales volume or cutting costs.

However, demand typically decreases following a price increase. Therefore, measuring how customers may react to a price change is essential. This understanding is measured by price elasticity.

What is price elasticity? 

It quantifies the relationship between price and demand. We can define it as the ratio between the percentage change in demand and the percentage change in price.

Do you want to explore price elasticity and its limitations in pricing analysis? Download our free infographic to learn more!