In order for a small-business order to price her products or services correctly, she must be able to understand what impact that price will have on demand. In some cases, demand will rise or fall with ...

The burden of taxes can effect how a specific product will do in the marketplace. Tax incidence shows the effect a tax will have on the seller of the product and the consumer. Governments also can ...

Goods and services can be either elastic or inelastic. Elastic means the product is more sensitive to price changes, such as luxury goods and non-necessary items. Inelastic means the product is less ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Lea Uradu, J.D., is a Maryland state registered tax preparer, state-certified notary public, ...

Elasticity is a method of measuring the likelihood of one economic factor affecting another, such as when the price of an item affects consumer demand or when supply affects how much something costs.

The challenge is wrapping your head around the difference between elasticity and inelasticity of demand. Elasticity of demand measures how much the demand for a product or service changes relative to ...

Price elasticity measures how demand changes with price adjustments; key for investment decisions. Investors should focus on companies developing inelastic products for greater pricing power.

Compare tax relief providers that match your needs. Find Tax Experts Reduce your tax burden now The government imposes taxes on every product or service sold in the market. But who should pay for this ...

Price elasticity of demand is a measure of the degree to which changes in a product’s price affect how much of that product consumers purchase. At $1.99, you might impulse buy a bottle of Coke. At ...

Economists use elasticity of demand to gauge how responsive consumers are to changes in price and income, but investors can also use elasticity of demand to help make more informed investing decisions ...