Demand elasticity is a phenomenon where demand for a specific good or service changes depending on factors such as how it is priced, whether alternatives are available or local income trends.

Theory of Demand, tells the relationship between the price of goods and its quantity demanded. If the price of any good or service increases then its demand decreases and vice versa. The better you ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Michael Boyle is an experienced financial ...

Get the latest news and market analysis from our in-house experts. Real GDP shows the value of an economy’s output, adjusted for any changes in inflation, interest rates or other factors which could ...