According to the Wagenaar study, heavy drinkers are subject to a price elasticity of -0.28.
This law rules the world of technology because of what economists call price elasticity of demand.
The price elasticity of demand is such that if prices rose by 10%, volume only falls by 4%.
FORBES: Big Tobacco Stocks Among Healthy Standouts In Market's Turbulent Swings
In a crowded, commoditized market characterized by price elasticity, prices will fall, accompanied by a rush for market share.
Is there enough price elasticity in parking fees to make the plan work?
However, as these studies have become more sophisticated, the consensus estimate of the tax-price elasticity has diminished to significantly less than one.
Even a very conservative estimate of price elasticity (-0.1) would imply a 10% decline in volume in 2013 due to the base effect.
Consider, for example, what we call the price elasticity of wages, as defined in economics to capture the relationship between pay and employee effort.
FORBES: Employee remuneration systems are often based on the wrong assumptions
These manufacturers are able to analyze a price elasticity curve, yielding a forecast of the average unit retail price before product development dollars are spent.
FORBES: Pricing Part 3: How Does A Brand Know When The Price Is Right?
They will try to understand price elasticity of demand by segment.
FORBES: Apple Partners To Subsidize iTVs; Sharp To Produce Sets
We also think that the late 2011 demand surge, although it will very likely reverse in Q1, is evidence that demand price elasticity exists in solar.
Export-led growth works well in a world where the price elasticity of demand for the exported goods is effectively infinite, where any decrease in costs will always lead to an expansion in sales.
The idea of economists to use artificial scarcity pricing to do this is aggressively marketed in blogs, magazines and TV shows, but is extremely unlikely to work, because the current price elasticity of oil is so low.
FORBES: Raising Gas Taxes Wouldn't Cut Consumption, But It Still Makes Sense
In response, several bloggers have argued that these elasticities are underestimated, pointing to the unreliability of estimates of long-run price elasticity of oil demand in general and to other literature with higher estimates than the IMF study.
FORBES: Raising Gas Taxes Wouldn't Cut Consumption, But It Still Makes Sense
If food demand or supply has a very low elasticity with respect to price in the short term then when we have only a minor change in supply and or demand then we will see large changes in food prices.
FORBES: The Real George Osborne: World Development Movement's New Campaign
应用推荐