So, if price increases by 10 percent, and demand falls by -0.5 percent, the price elasticity of demand would be -0.5. However, by convention, price elasticity is expressed as a positive number.

The cross elasticity of demand tells you how your customers will react to a change in your product's price. It is a way to mathematically measure the amount you can increase an item's price before ...

Luxury goods have a positive income elasticity of demand. As a consumer's income rises, the demand for luxury goods may increase. An accurate AED for luxury items such as an expensive car or ...

The demand curve is the supply curve's counterpart: the higher the supply, the lower the price. Article Sources Investopedia requires writers to use primary sources to support their work.