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Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso -- Price Elasticity
Description: Price Elasticity Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Price elasticity measures how much a price increase will decrease overall revenue. If an increase in price results in no reduction in revenue then the price is considered inelastic. Test your product’s price elasticity by increasing the price by 10% then measure the overall revenue after a month. If the overall revenue has gone down then the price is elastic which means the market is sensitive to price changes. On the other hand, if the overall revenue goes up...