Price Elasticity

What is Price Elasticity?

Price elasticity is the degree to which quantity is changed by price movements.

Where there are price changes, demand and supply will change. How much they change is determined by how price elastic the good or service is.

The slope of the demand and supply curves explains how price elastic the product is.

These diagrams show the price elasticity of demand and supply.

What is price elasticity?

Learn more about demand and supply and markets with these free resources and low cost business tutorials.