The market is always changing, but did you know it can stretch? 🧘
Here's your chance to learn about the elasticity of supply/demand! 🤓
💡 Elasticity of supply/demand = how sensitive a product/stock is to supply/demand changes 🏷️
Many of us have favorite products, but would they still be our favorite if the price doubles? 🤔
This is what Elasticity hopes to determine and it helps businesses decide if price increases are worth it 🤑
The elasticity of supply/demand also depends on the availability of competing products. 🤔
If Apple 2x-ed their prices but Android released a great product, then many customers would buy Android devices. 🤖
If there are few great alternatives for a certain stock, then the demand for that stock will be less elastic. 💼
So the demand for that stock will be less sensitive to changes in price. 🤔
The elasticity of supply/demand also depends on the time frame, or how long you’re hoping to invest in a stock. 🕰️
If the time frame is short, then the demand for a certain stock will be more elastic. 💪
That means that the demand for that stock will be more sensitive to changes in price.
On the other hand, if the time frame is long, then the demand for a certain stock will be less elastic. 🤑
That means that the demand for that stock will be less sensitive to changes in price. 🤓
So, now you know that elasticity helps investors understand how sensitive a stock or product may be to changes in supply and demand! 🚀