Cryptocurrency Q&A What is the relationship between price elasticity and profit?

What is the relationship between price elasticity and profit?

Thu Jan 09 2025 | 7 answers 1324
I'm trying to understand the correlation between price elasticity and profit. How does the sensitivity of demand to price changes affect a company's profitability? Are there specific patterns or trends to observe? What is the relationship between price elasticity and profit?

7 answers

Sat Jan 11 2025
When demand is price inelastic, an increase in price results in a decrease in sales volume.

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Fri Jan 10 2025
Lower costs contribute to higher profits, as the business spends less on producing and distributing goods.

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Fri Jan 10 2025
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Fri Jan 10 2025
Despite the decline in sales, sales revenue may still rise due to the higher price point.

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Fri Jan 10 2025
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