hintakysyntäjousto

Hintakysyntäjousto, often translated as price elasticity of demand, is an economic concept that measures the responsiveness of the quantity demanded of a good or service to a change in its price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price. A high hintakysyntäjousto indicates that demand is very sensitive to price changes, meaning a small price increase will lead to a proportionally larger decrease in the quantity demanded, and vice versa. Conversely, a low hintakysyntäjousto signifies that demand is relatively unresponsive to price changes.

Several factors influence hintakysyntäjousto. The availability of substitutes is a key determinant; if many substitutes exist, demand tends to be more elastic as consumers can easily switch to alternatives if the price rises. The proportion of income spent on the good also plays a role; goods that represent a larger portion of a consumer's budget are typically more elastic. The time horizon considered is another factor, as demand may become more elastic over longer periods as consumers have more time to adjust their behavior.

Understanding hintakysyntäjousto is crucial for businesses when setting prices and for policymakers when considering taxes or subsidies. For instance, if a product has a high hintakysyntäjousto, a price increase might lead to a significant drop in sales and potentially lower overall revenue. Conversely, for goods with low elasticity, price increases may result in higher revenue despite a smaller decrease in quantity demanded.