Episode 108 Price Elasticity of Demand

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What’s better than watching videos from Alanis Business Academy? Doing so with a delicious cup of freshly brewed premium coffee. Visit https://www.lannacoffeeco.com and get free shipping on your online order. • Help us learn more about your experience by completing this short survey: https://www.surveymonkey.com/r/RRKS8LZ • Subscribe to Alanis Business Academy on YouTube for updates on the latest videos: https://www.youtube.com/alanisbusines... • Go Premium for only $9.99 a year and access exclusive ad-free videos from Alanis Business Academy. Click here for a 14 day free trial: http://bit.ly/1Iervwb • View additional videos from Alanis Business Academy and interact with us on our social media pages: • YouTube Channel: http://bit.ly/1kkvZoO • Website: http://bit.ly/1ccT2QA • Facebook: http://on.fb.me/1cpuBhW • Twitter: http://bit.ly/1bY2WFA • Google+: http://bit.ly/1kX7s6P • Listen to Alanis Business Academy on the go by downloading our new podcast: • iTunes: http://bit.ly/1dwKyWi • Stitcher: http://bit.ly/PvPjoa • Tunein: http://bit.ly/1gLsDH4 • Price elasticity of demand is an economics concept that indicates the degree to which consumers are sensitive to changes in price for various goods and services. Due to the law of demand, we know that an inverse relationship exists between price and demand. As a result, as the price of a good or service rises the general belief is that demand for this good or service will decrease (all other variables held constant of course). However certain goods and services experience greater volatility in terms of the quantity demanded as a result of price fluctuations. Understanding the price elasticity of demand equation allows businesses to understand how price sensitive their customers are at various price points. Businesses can then use this information to establish more effective pricing strategies and ultimately increase revenue. In addition to defining the price elasticity of demand in this video, we'll also work through a quick calculation of the price elasticity of demand. • If you have any questions please post a comment in the comments back and I'll get back to you as soon as I can. Thanks for watching.

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