Price Elasticity of Demand
What you’ll learn
- What price elasticity of demand is and how it works
- How demand for various products behaves differently in terms of price
- The relationship between price changes and demand
Prices fluctuate all the time. What happens when a product gets more expensive? When it gets cheaper? Do customers behave differently?
Price elasticity measures how prices affect supply and demand. In this course, you’ll observe the difference between elastic and inelastic demand. Then you’ll learn about how substitutes and other influencing factors characterize both a product and the behavior of its customers.