In special cases the law of demand is reversed, and demand actually increases alongside price. This is referred to as reverse price elasticity (of demand).
Examples of price elasticity of demand – situations where changes in demand exceed changes in price.
Examples of price inelasticity – situations where demand does not change correspondingly to price.
If you do any reading or research about pricing you will come across the term “price elasticity”. Shortened from “price elasticity of demand” this is important (but easy) to understand.
New content this week looks at real-world examples of elastic, inelastic and reverse elastic demand.
New content this week focusses on some background economic concepts (the law of demand & price elasticity), plus an example of bundling on roasted chicken.