4 ms·
Worded differently: when the demand curve is inelastic, changes in price don’t change demand much in the short term. For more elastic curves, higher prices redu
by robnado 4y ago
Worded differently: when the demand curve is inelastic, changes in price don’t change demand much in the short term. For more elastic curves, higher prices reduce demand a lot more, which incentivizes setting a lower price if businesses are to optimize profit.
- anticensor 4y agoYeah, pricing-based manipulation works only best if supply is completely inelastic but demand is completely elastic.