Why the market’s response to price depends on what else is happening at the time. The problem with a single elasticity number We have all seen elasticity expressed as a number. Increase price by a certain amount and demand is expected to move by another amount. It is useful. But does the same number really apply every time? Think about it. The same product can behave very differently when demand is strong versus weak. Customers may respond differently when you are priced below competitors...