Price elasticities

Price elasticities

The percentage change in quantity divided by a percentage change in the price. Answers the question: How much will the demand for my product decrease if I raise prices by 10%?

Elasticity of Demand

The relative stability of a security's or product's price in the face of increased or decreased demand. Elastic securities or products have prices that move as independently as possible from changes in demand. In securities, elasticity is strongly influenced by the number of shares outstanding; if a company has many shares outstanding, a large order to buy or sell them is less likely to affect the price as strongly as a similar order for a company with comparatively few shares outstanding. In other products, elasticity largely comes from whether a given product is considered a necessity or a luxury. A "necessary" product is likely to be more elastic. See also: Income Elasticity of Demand.
References in periodicals archive ?
30) Price elasticities are more negative in the restricted model for all crimes besides vehicle theft, with large differences for crimes other than murder.
Following recent literature on the correct computation of price elasticities when LA/AIDS is used (Alston, Forster, and Greene 1994; Pashardes 1993), the price elasticity of commodity i with respect to commodity j adjusted for bias is formulated as
Fuller, "The Role of Price Elasticities of Demand in the Economic Impact of a Port") is currently under revision for resubmission to a professional journal.
This potential results brom the different price elasticities of demand across physician services.
As a consequence, the estimated price elasticities of demand based on single-equation fixed coefficient methods, such as GLS or SUR, are not reliable, i.
We have an initial pricing structure, but will be testing a number of pricing strategies during the trial in order to look at price elasticities.
By applying the 10% price subsidy to the estimated price elasticities, we can obtain the percentage increase in consumption.
TABLE 1 Growth in Rate Level and Exposure Count at Varying Price Elasticities Original New Average Original Average New Rate Exposure Original Rate Exposure New Level Count Premium Level Count Premium 100 10,000 $1,000,000 $90.
With regard to cross price elasticities, Pindyck and Rubinfeld (2005, p.
Hicks own and cross price elasticities of demand for input i with respect to its market price turns out
Although BAM offers advantages for various price elasticities of demand, companies cannot choose what price elasticity of demand suits them best and must simply adapt to the market.
Their two-part model controlled for cigarette excise taxes and estimated price elasticities between -0.