prisfølsom

Prisfølsom refers to the degree to which the demand for a product or service is affected by changes in its price. It is a key concept in economics and marketing, helping businesses understand how price adjustments might impact sales volume and revenue.

A product with high prisfølsom, also known as elastic demand, will see a significant change in the quantity demanded when its price increases or decreases. For example, if the price of a luxury watch increases by 10%, and the demand for it drops by 20%, that watch is considered highly prisfølsom. Conversely, a product with low prisfølsom, or inelastic demand, experiences only a small change in quantity demanded despite price fluctuations. Essential goods like basic food items or life-saving medications often exhibit inelastic demand; even if their prices rise, consumers will likely continue to purchase them due to necessity.

Businesses use prisfølsom analysis to set optimal prices. Understanding this sensitivity allows them to forecast the potential consequences of price changes on their profitability. For instance, a company might decide to lower prices for a highly prisfølsom product to attract more customers and increase overall revenue, while keeping prices stable for an inelastic product to maintain consistent sales. Factors influencing prisfølsom include the availability of substitutes, the product's necessity, and the proportion of income it represents for the consumer.