![]() In the case of inelastic demand, they can fix high prices, while elastic demand makes them set lower prices to stand out from the competition. Monopolistis and owners of products with almost no substitutes on the market consider the elasticity of demand when setting a price for their products. They are set on developing a product with inelastic demand so that consumers buy it regardless of whether the price changes. Price elasticity of demand is of high priority for economists and marketers since this concept lets them forecast the success of their business. Why is the price elasticity of demand important? In this article, you'll get to know why economists and marketers monitor the price elasticity of demand, uncover the factors affecting it, and learn how to calculate the measurement, so stay tuned. ![]() How to calculate the price elasticity of demand.Factors Affecting Price Elasticity of Demand. ![]() Why is the price elasticity of demand important?.
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