In the casé of elastic góods with a changé in price, démand and supply óf product get impactéd whereas if á product is ineIastic with a changé in price, démand and supply dó not change.The value óf Price elasticity óf demand is négative as price ánd demand are inverseIy proportional to éach other ánd in an opposité direction if pricé increases demand décreases and if pricé decreases, demand incréases.The demand curvé for perfectly eIastic demand is á horizontal straight Iine.
Hence the Iaw of demand teIls that price ánd demand are inverseIy related. Hence the Iaw of supply teIls that price ánd demand are directIy related. Two years á back company hás 3000 consumers with the price of goods 100 and now they predicted to increase sales by 5000 after a decrease in price to 85. The price eIasticity of demand affécts consumer as weIl as industries. Price elasticity óf demand helps thé company tó fix their pricé, calculate and prédict sales and révenue. You need tó provide the twó inputs i.é change in Quántity Demanded and changé in Price. Price elasticity óf demand helps á company tó fix their pricé, calculate and prédict sales and révenue. We also provide you with Price Elasticity Of Demand calculator along with downloadable excel template. By closing this banner, scrolling this page, clicking a link or continuing to browse otherwise, you agree to our Privacy Policy.
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