In economics, price elasticity is a measure of how reactive the marketplace is to a change in price for a given product.

Price elasticity measures how demand changes with price; it gauges a firm's pricing power. Investors should examine firms' price elasticity to decide if a product has sustainable profit potential.

Answer: Price elasticity in marketing is calculated as the absolute value of the ratio of the percentage quantity change and the associated percentage price change. So, to calculate the price ...