The Sage Course Companion on Marketing is an accessible introduction to the subject that will help readers to extend their understanding of key concepts and enhance their thinking skills in line with course requirements. It provides support on how to revise for exams and prepare for and write assessed pieces. Readers are encouraged not only to think like a marketer but also to think about the subject critically. It is much more than a revision guide for undergraduates; it is an essential tool that will help readers take their course understanding to new levels and help them achieve success in their undergraduate course.

Elasticity of Demand

Elasticity of Demand

Elasticity of demand

Elasticity of demand is the degree to which demand for a product is affected by another variable, commonly (but not confined to) price.

The concept of elasticity of demand has been provided by economic theorists. Elasticity is the degree to which demand is affected by another variable, in most cases price. It is a measure of the change in demand that occurs as prices rise or fall (or of course as whichever other variable is significant rises or falls).

A product is said to have a price inelastic demand curve if a change in price has little effect on demand. The example most often quoted is that of salt: salt is so infrequently purchased, and is so cheap, that most people would ...

  • Loading...
locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles