kysyntäjouosto

Kysyntäjousto, also known 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 highkysyntäjousto indicates that consumers are very responsive to price changes. For example, if the price of a luxury item increases slightly, the quantity demanded may fall significantly. This is often true for goods with many substitutes or those that represent a large portion of a consumer's budget.

Conversely, a low kysyntäjousto means that consumers are not very responsive to price changes. The quantity demanded changes very little even when the price fluctuates. This is typically seen with essential goods like basic food staples, medications, or goods with few or no close substitutes.

Understanding kysyntäjousto is crucial for businesses when setting prices and for governments when considering taxation policies. For instance, a product with high elasticity might see a significant drop in sales if its price is increased, potentially leading to lower overall revenue. For inelastic goods, price increases might lead to higher revenue, as the decrease in quantity demanded is proportionally smaller than the price increase.