noun[mass noun] Economics
A measure of the effect of a price change or a change in the quantity supplied on the demand for a product or service.
- Look for services with high fixed costs, price elasticity - meaning that consumers will typically buy more if prices drop - and the ability to be ordered over the Internet.
- The telecommunications sector exhibits strong price elasticity of demand.
- On the demand side, agricultural products have a very low price elasticity.
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