Elasticity: The Economic Concept Behind How Companies Price Products | The Price Index | WSJ


The economic concept is key to understanding how companies price their products.

Consumer spending has held up relatively well so far despite inflation, but experts say we’re approaching an inflection point. WSJ’s Sharon Terlep explains the role ‘elasticity’ plays in a company’s decision on whether to raise prices. Photo illustration: Adele Morgan

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Keith Jacobs

Keith Jacobs

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