{"id":4506,"date":"2016-02-13T01:22:31","date_gmt":"2016-02-13T01:22:31","guid":{"rendered":"https:\/\/courses.candelalearning.com\/marketingxwaymakerxspring2016\/?post_type=chapter&p=4506"},"modified":"2016-02-18T18:24:36","modified_gmt":"2016-02-18T18:24:36","slug":"outcome-price-elasticity","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/clinton-marketing\/chapter\/outcome-price-elasticity\/","title":{"raw":"Outcome: Price Elasticity","rendered":"Outcome: Price Elasticity"},"content":{"raw":"

What you'll learn to do: explain price elasticity and its impact on\u00a0price<\/h2>\r\nNow that you\u00a0understand different pricing strategies, we're going to tackle\u00a0one more concept that helps when selecting the right strategy: price elasticity.\u00a0Elasticity helps us\u00a0understand how much a change in price will affect\u00a0market behaviors. If we make a small change in price, will the change\u00a0have\u00a0a dramatic impact on\u00a0the demand for the product or only a small impact? Price elasticity is the measure of the market's response to price changes.\r\n\r\nElasticity is important to pricing decisions because it helps us understand whether raising prices or lowering prices will enable\u00a0us to achieve our pricing objectives. Will a discount drive increased sales? Will a price increase cause us to lose many buyers or just a few? We have to answer these questions in order to select the most effective\u00a0pricing strategy.\r\n\r\nWhen\u00a0you work through this section, start by trying to get a handle on the concept: elasticity helps us understand whether a price change will have a big impact on demand or a small impact. That's it. Don't get too hung up on the math at first. Master the concept; then add the math.\r\n\r\nThe following video gives\u00a0an overview of economics that will better prepare you for the readings.\r\n\r\nhttps:\/\/youtu.be\/nWPrMmv1Tis?t=1s\r\n\r\nThe specific things you\u2019ll learn in this section include:\r\n