Price elasticity

Price elasticity is a measure to show the responsiveness of the quantity demand for a product or service to a change in its price.  Or expressed in another way - By how much can prices increase before losing customers and how will sales be effected?

Price Elasticity Market Research

And the corollary – by how much should prices be discounted to win customers and by how much will sales be effected?   Certain products are price inelastic.  i.e. such as fuel - customers will go on buying the same quantity despite price increases.  Other products are price elastic – customers will reduce or stop buying as prices increase  i.e. luxury cars.  Suppliers are continually faced with the decision on where to pitch their prices – market research can provide the answers.