The word “elasticity” is defined as the ratio of the price of a good to its production. The higher the elasticity, the more the price elasticity.
If a company is able to sell a lot of widgets at a given price, they are said to have a “high price elasticity.” If a company can sell many more widgets at a given price, they are said to have a “low price elasticity.” For a company to be price elastic, they must have a high elasticity. But, I guess you have to be willing to pay a lot more for a widget to be more price elastic.
Ok, so what is price elasticity? Well, yes, so that means that the price of something is more or less proportional to the quantity it can be sold. But, it’s not only price that matters, it’s also quantity. When a company has high price elasticity, it’s able to sell a lot of widgets at a given price. When a company has a low price elasticity, it’s able to sell a lot more widgets at a given price.
Price elasticity is related to the price of a widget because the more a company can sell a widget at any given time the less people will prefer to buy widgets at that price. The reason for this is that the people with high price elasticity will buy more widgets at any given time because it means the company can sell more widgets at that price. The people with low price elasticity will buy less widgets at that price because it means the company can sell less widgets at that price.
And the reason for the price elasticity is that the more a company gives to its users, the lower the demand for that widget will be. The reason for the price elasticity is because if a widget is sold at any rate, it means the company can sell the widget at a smaller price, and so on.
A lot of the time (that is until the price of a widget grows) you may see that the price elasticity of an item is due to the demand for that item. But unlike the price elasticity, the price elasticity is not a simple thing.
I like to think of the price elasticity as being the difference between the price of the item and the price of the market. The price elasticity of an item is the change in the price of the item over time. You can think of it like a change in the price of a widget.
For the price elasticity of demand to exist, you need to have the price of an item and the price of the market. But this is an oversimplification because there are many other factors involved. For instance, the price of a widget needs to be elastic in order for the price of the widget to exist. You also need to have people willing to buy the widget at the price you set. This is also a complex concept, so I’ll talk about it in the next section.
