Verðóháðni

Verðóháðni, often translated as price dependence or price sensitivity, refers to the degree to which the quantity demanded of a good or service changes in response to a change in its price. It is a fundamental concept in economics, particularly within the study of demand elasticity. A high degree of verðóháðni means that consumers are very responsive to price changes. A small increase in price can lead to a significant decrease in the quantity demanded, and conversely, a small decrease in price can lead to a substantial increase in demand. Conversely, low verðóháðni indicates that consumers are relatively unresponsive to price fluctuations. Changes in price will only result in a small change in the quantity demanded.

Several factors influence verðóháðni. The availability of substitutes is a key determinant; if many close substitutes exist, demand is likely to be more price-sensitive as consumers can easily switch to cheaper alternatives. The proportion of income spent on the good also plays a role; goods that represent a large portion of a consumer's budget tend to have higher verðóháðni. The necessity of the good is another factor; essential goods like medicine typically exhibit low verðóháðni, as demand remains relatively stable regardless of price. The time horizon considered also matters, as consumers may have more time to adjust their behavior to price changes in the long run than in the short run. Businesses use the concept of verðóháðni to inform pricing strategies, marketing decisions, and sales forecasts. Understanding how consumers react to price changes is crucial for maximizing revenue and profitability.