Price Elasticity

How much demand changes when price changes. Elastic demand drops sharply when price rises; inelastic demand barely moves.

When you'd see it: Pricing decisions and revenue modelling. If demand is inelastic, there's room to raise price; if elastic, a rise can cost more volume than it gains in margin.

Why it matters: Elasticity tells you whether a price increase will grow or shrink revenue. Most teams assume their product is more price-sensitive than it actually is.