price

of

goods and

goods, individual

The

between

and

demanded

Higher prices mean higher

providing the

to expand

.

% change in

divided by % change in

Availability of

, percentage of household

spent on the good, degree of

, and

period

(more elastic with

)

Firms like demand to be price

as they can then

it more. Governments like demand to be price

as it means a

which lowers price will be more effective. A decrease in price would cause a

than proportional increase in

.