Coefficient of Elasticity
The concept describes the importance of understanding the price elasticity of demand. The concept explains how the quantity demanded of a good or service responds to a change in the price of that good or service and provides case studies of organisations that apply the coefficient of elasticity to perform better.
Coefficient of Elasticity Definition
Elasticity is a measure of the responsiveness of quantity demanded or quantity supplied to one of its determinants. Economists usually refer to the coefficient of elasticity as the price elasticity of demand, a measure of how much the quantity demanded of a good responds to a change in the price of that good, computed as the percentage change in the quantity demanded divided by the percentage change in price. Other coefficients of elasticity may relate to 'income elasticity of demand', 'cross-elasticity of demand', or the 'elasticity of supply' (Andreyeva, 2010; Mankiw, 2009).
Coefficient of Elasticity Description *
* The full technique overview is available for members only. Why not sign up for a free trial of our business management platform, and learn all about Coefficient of Elasticity.
Coefficient of Elasticity Strengths *
Coefficient of Elasticity Weaknesses *
Examples of Coefficient of Elasticity *
* The business evidence section is for members only. Please log in or subscribe to view the Business Evidence.
Coefficient of Elasticity Implementation *
Success Factors of Coefficient of Elasticity *
Measures of Coefficient of Elasticity *
* The business application section is for members only. Please log in or subscribe to view the Business application.
Coefficient of Elasticity Videos *
Coefficient of Elasticity Downloads *
* The professional tools section is for members only. Please log in or subscribe to view the professional tools.
Coefficient of Elasticity Web Resources *
Coefficient of Elasticity Print Resources *
Coefficient of Elasticity References (4 of up to 20) *
- Anderson, C. (2005), The Zen of Jeff Bezos, Wired, 13.01, available at: http://www.wired.com/wired/archive/13.01/bezos.html
- Andreyeva, T., Long, M., and Brownell, K. (2010) The Impact of Food Prices on Consumption: A Systematic Review of Research on the Price Elasticity of Demand for Food, American Journal of Public Health, 100 (2), pp. 216-222.
- Arnold, R. A. (2013) Microeconomics, South-Western College Publishing.
- Ball, J. (2006), As Gasoline Prices Soar, Americans Resist Major Cuts in Consumption, The Wall Street Journal. May 1st.
* The further reading section is for members only. Please log in or subscribe to view the further reading.
Learn more about KnowledgeBrief Manage and how you can equip yourself with the knowledge to succeed on Coefficient of Elasticity and hundreds of other essential business management techniques