Do not assume that if you lower your prices, demand will increase enough to make up the difference in income you will receive for products and services. Also, you should not assume that if you raise ...

According to the law of demand, when the price of a product goes up, consumers will buy less of it and vice versa. The concept of elasticity measures how much less consumers will buy when the price ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Somer G. Anderson is CPA, doctor of ...

Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor. Claire's expertise lies in corporate finance & accounting, mutual funds, ...

One fundamental concept in economics is that supply and demand determine price. The greater the amount of supply of a product or service that's available and the less demand there is for it, the lower ...

Economists use elasticity of demand to gauge how responsive consumers are to changes in price and income, but investors can also use elasticity of demand to help make more informed investing decisions ...

Sometimes external forces in the economy throw the supply and demand for a product or service out of whack. Trade quotas are a common and powerful example of one such external force. One way ...

Commodity prices are set by the balance of supply and demand dynamics. Market fluctuations in commodities influence both short-term prices and long-term productions. Price surges trigger increased ...