Elasticity refers to a measure of the sensitivity of a variable in accordance with another variable’s change. This way, one can measure the change in aggregate product demand with respect to price ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Price elasticity measures how much the amount of a product or service that people want changes when its price changes. This idea is important in economics because it shows how consumers respond to ...

Point elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price at a specific point on the demand or supply curve. Point elasticity calculates the ...

The inverse elasticity rule is a principle in public economics and pricing strategy that suggests how to set optimal taxes or prices to maximize revenue or efficiency. The inverse elasticity rule is ...