{"id":5517,"date":"2025-06-25T12:52:34","date_gmt":"2025-06-25T02:52:34","guid":{"rendered":"https:\/\/murrayslatter.me\/?p=5517"},"modified":"2025-10-06T01:26:42","modified_gmt":"2025-10-05T14:26:42","slug":"elasticity","status":"publish","type":"post","link":"https:\/\/murrayslatter.me\/?p=5517","title":{"rendered":"Elasticity"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">How Sensitivity Shapes Strategy and Profitability<\/h2>\n\n\n\n<p>In business and economics, few concepts offer more practical insight for executives than <strong>elasticity<\/strong>. Whether you&#8217;re adjusting prices, launching new products, or allocating capital, elasticity helps you anticipate how customers, markets, and even suppliers will <em>respond<\/em> to changes.<\/p>\n\n\n\n<p>Understanding elasticity isn&#8217;t about academic theory\u2014it&#8217;s about anticipating reactions before they cost you real money or market share.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What Is Elasticity in Business?<\/strong><\/h3>\n\n\n\n<p>At its core, <strong>elasticity<\/strong> measures the responsiveness of one variable to a change in another. Most commonly:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Price Elasticity of Demand<\/strong> (PED): How much demand changes when price changes.<\/li>\n\n\n\n<li><strong>Income Elasticity of Demand<\/strong>: How demand shifts with consumer income.<\/li>\n\n\n\n<li><strong>Cross Elasticity<\/strong>: How demand for one product changes when the price of a related product changes (e.g., substitutes or complements).<\/li>\n\n\n\n<li><strong>Elasticity of Supply<\/strong>: How responsive producers are to changes in price.<\/li>\n<\/ul>\n\n\n\n<p>Elasticity is about <strong>proportional change<\/strong>:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>If I change X by 10%, what percent will Y change?<\/em><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"640\" height=\"363\" src=\"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Elastisity-1.png?resize=640%2C363&#038;ssl=1\" alt=\"\" class=\"wp-image-5813\" srcset=\"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Elastisity-1.png?resize=1024%2C581&amp;ssl=1 1024w, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Elastisity-1.png?resize=300%2C170&amp;ssl=1 300w, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Elastisity-1.png?resize=768%2C435&amp;ssl=1 768w, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Elastisity-1.png?resize=700%2C397&amp;ssl=1 700w, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Elastisity-1.png?resize=520%2C295&amp;ssl=1 520w, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Elastisity-1.png?resize=360%2C204&amp;ssl=1 360w, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Elastisity-1.png?resize=250%2C142&amp;ssl=1 250w, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Elastisity-1.png?resize=100%2C57&amp;ssl=1 100w, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Elastisity-1.png?w=1372&amp;ssl=1 1372w, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Elastisity-1.png?w=1280&amp;ssl=1 1280w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/figure>\n<\/blockquote>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Why Executives Should Care<\/strong><\/h3>\n\n\n\n<p>Elasticity is not just for economists\u2014it\u2019s a <strong>strategic lever<\/strong>. Understanding elasticity empowers you to:<\/p>\n\n\n\n<p>\u2705 <strong>Set smarter prices<\/strong><br>\u2705 <strong>Predict the success of discounts or promotions<\/strong><br>\u2705 <strong>Choose which customers or segments to target<\/strong><br>\u2705 <strong>Forecast revenue under macroeconomic shifts<\/strong><br>\u2705 <strong>Decide where automation or cost-cutting will hurt least<\/strong><\/p>\n\n\n\n<p>For example, if your product is highly <strong>inelastic<\/strong>, you have <strong>pricing power<\/strong>\u2014you can raise prices without losing many customers. But if your offering is highly <strong>elastic<\/strong>, a small price increase might tank your sales.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Strategic Implications of Elasticity<\/strong><\/h3>\n\n\n\n<p>Here are five executive-level applications of elasticity:<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h4 class=\"wp-block-heading\">1. <strong>Pricing Power and Competitive Strategy<\/strong><\/h4>\n\n\n\n<p>A product with <strong>inelastic demand<\/strong> (e.g. medicine, utilities, addictive goods) can absorb price increases. Companies like Apple benefit from brand loyalty that makes demand less sensitive to price.<\/p>\n\n\n\n<p><strong>Lesson:<\/strong> If you build brand, utility, or network effects, you increase inelasticity\u2014and margin.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h4 class=\"wp-block-heading\">2. <strong>Segmented Pricing and Market Capture<\/strong><\/h4>\n\n\n\n<p>Elasticity often differs by customer segment. For example, price-sensitive customers may need discounts, while loyal or enterprise customers tolerate premiums.<\/p>\n\n\n\n<p><strong>Lesson:<\/strong> Use elasticity data to build <strong>tiered offerings<\/strong> and <strong>value-based pricing<\/strong>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h4 class=\"wp-block-heading\">3. <strong>Forecasting in Volatile Markets<\/strong><\/h4>\n\n\n\n<p>In downturns, income elasticity becomes key. Luxury goods often experience sharp drops, while essentials remain stable or grow.<\/p>\n\n\n\n<p><strong>Lesson:<\/strong> If you&#8217;re in a luxury or discretionary sector, <strong>build flexibility<\/strong> into your cost base.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h4 class=\"wp-block-heading\">4. <strong>Capital Allocation and Product Line Strategy<\/strong><\/h4>\n\n\n\n<p>If Product A is highly elastic and Product B is inelastic, where should your next $1M in marketing or R&amp;D go?<\/p>\n\n\n\n<p><strong>Lesson:<\/strong> Invest where demand is <strong>least sensitive to shocks<\/strong> or where marketing <strong>amplifies returns<\/strong>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h4 class=\"wp-block-heading\">5. <strong>Elasticity as a Defensive Tool<\/strong><\/h4>\n\n\n\n<p>If a new entrant undercuts your pricing, how much demand will you lose? Elasticity helps you know whether you need to fight price wars\u2014or hold firm.<\/p>\n\n\n\n<p><strong>Lesson:<\/strong> Use elasticity to anticipate <strong>competitive dynamics<\/strong> and avoid reactive decisions.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Common Pitfalls in Thinking About Elasticity<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Assuming elasticity is constant<\/strong> \u2013 It varies by <em>price point<\/em>, <em>timeframe<\/em>, and <em>context<\/em>.<\/li>\n\n\n\n<li><strong>Ignoring switching costs and frictions<\/strong> \u2013 Even if products are substitutes, behavior isn\u2019t always rational.<\/li>\n\n\n\n<li><strong>Over-relying on historical elasticity<\/strong> \u2013 COVID, inflation, or geopolitical shocks can break past patterns.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>How to Measure Elasticity in Practice<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Run A\/B pricing tests<\/strong> to estimate sensitivity.<\/li>\n\n\n\n<li><strong>Use econometric models<\/strong> with historical data.<\/li>\n\n\n\n<li><strong>Survey customer WTP (Willingness to Pay)<\/strong> in different contexts.<\/li>\n\n\n\n<li><strong>Model cross-elasticity<\/strong> to understand product cannibalization or bundling potential.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Mental Model: Think of Elasticity as a Lever<\/h3>\n\n\n\n<p>Imagine every lever you can pull\u2014pricing, product mix, channel, marketing spend. Elasticity tells you <strong>which levers move the most<\/strong> with the least force.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>Strategic executives don\u2019t just pull levers.<br>They measure which ones are worth pulling\u2014and when.<\/p>\n<\/blockquote>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Executive Reflection Questions<\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Which of your products or services are most price-sensitive?<\/li>\n\n\n\n<li>Are you underpricing inelastic offerings or overpricing elastic ones?<\/li>\n\n\n\n<li>Do you understand elasticity across <strong>segments<\/strong>, not just overall?<\/li>\n\n\n\n<li>Could elasticity insights help you reshape your go-to-market or bundling strategies?<\/li>\n\n\n\n<li>Where could you improve margin or market share just by understanding <em>why customers buy<\/em>?<\/li>\n<\/ol>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Conclusion: Elasticity as a Strategy Multiplier<\/h3>\n\n\n\n<p>Elasticity transforms pricing from guesswork into a precision tool. It guides you to decisions that respect both human behavior and market mechanics. For leaders navigating uncertainty, it\u2019s not just a metric\u2014it\u2019s a mindset.<\/p>\n\n\n\n<p>Know your levers. Test your assumptions. And let the response\u2014not the noise\u2014guide your strategy.<\/p>\n\n\n\n<p>Missed out on the <a href=\"https:\/\/murrayslatter.me\/?p=5292\">over all series<\/a>?<\/p>\n\n\n\n<p><strong>Murray Slatter<\/strong><\/p>\n\n\n\n<p>Strategy, Growth, and Transformation Consultant: <a href=\"https:\/\/outlook.office.com\/bookwithme\/user\/ffef0aaaf9ce4fa9bc29e062d1cb0d0f@qfactor.com.au?anonymous&amp;ep=bwmEmailSignature\">Book time to meet with me here!<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Or Signup for the Newsletter<\/h2>\n\n\n\n<div class=\"wp-block-leadin-hubspot-form-block\">\n\t\t\t\t\t\t<script>\n\t\t\t\t\t\t\twindow.hsFormsOnReady = window.hsFormsOnReady || [];\n\t\t\t\t\t\t\twindow.hsFormsOnReady.push(()=>{\n\t\t\t\t\t\t\t\thbspt.forms.create({\n\t\t\t\t\t\t\t\t\tportalId: 24391455,\n\t\t\t\t\t\t\t\t\tformId: \"03fd50b1-a049-4bdb-b064-cff39a5f75dd\",\n\t\t\t\t\t\t\t\t\ttarget: \"#hbspt-form-1776424748000-8353584943\",\n\t\t\t\t\t\t\t\t\tregion: \"na1\",\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t})});\n\t\t\t\t\t\t<\/script>\n\t\t\t\t\t\t<div class=\"hbspt-form\" id=\"hbspt-form-1776424748000-8353584943\"><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>How Sensitivity Shapes Strategy and Profitability In business and economics, few concepts offer more practical insight for executives than elasticity. Whether you&#8217;re adjusting prices, launching new products, or allocating capital, elasticity helps you anticipate how customers, markets, and even suppliers [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":5812,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[118,1],"tags":[],"class_list":["post-5517","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mental-models-financial-investment","category-uncategorized","clearfix"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Elasticity - Murray Slatter<\/title>\n<meta name=\"description\" content=\"In business and economics, few concepts offer more practical insight for executives than elasticity. Sharpen your skills... and your profits\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/murrayslatter.me\/?p=5517\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Elasticity - Murray Slatter\" \/>\n<meta property=\"og:description\" content=\"In business and economics, few concepts offer more practical insight for executives than elasticity. Sharpen your skills... and your profits\" \/>\n<meta property=\"og:url\" content=\"https:\/\/murrayslatter.me\/?p=5517\" \/>\n<meta property=\"og:site_name\" content=\"Murray Slatter\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-25T02:52:34+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-10-05T14:26:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Elastisity1.png\" \/>\n\t<meta property=\"og:image:width\" content=\"822\" \/>\n\t<meta property=\"og:image:height\" content=\"512\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Murray Slatter\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Murray Slatter\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5517#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5517\"},\"author\":{\"name\":\"Murray Slatter\",\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/#\\\/schema\\\/person\\\/9774d7f727e6b917f43267614574f6d5\"},\"headline\":\"Elasticity\",\"datePublished\":\"2025-06-25T02:52:34+00:00\",\"dateModified\":\"2025-10-05T14:26:42+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5517\"},\"wordCount\":747,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5517#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/i0.wp.com\\\/murrayslatter.me\\\/wp-content\\\/uploads\\\/2025\\\/06\\\/Elastisity1.png?fit=822%2C512&ssl=1\",\"articleSection\":[\"Mental Models - Financial &amp; Investment\"],\"inLanguage\":\"en\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/murrayslatter.me\\\/?p=5517#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5517\",\"url\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5517\",\"name\":\"Elasticity - Murray Slatter\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5517#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5517#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/i0.wp.com\\\/murrayslatter.me\\\/wp-content\\\/uploads\\\/2025\\\/06\\\/Elastisity1.png?fit=822%2C512&ssl=1\",\"datePublished\":\"2025-06-25T02:52:34+00:00\",\"dateModified\":\"2025-10-05T14:26:42+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/#\\\/schema\\\/person\\\/9774d7f727e6b917f43267614574f6d5\"},\"description\":\"In business and economics, few concepts offer more practical insight for executives than elasticity. Sharpen your skills... and your profits\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5517#breadcrumb\"},\"inLanguage\":\"en\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/murrayslatter.me\\\/?p=5517\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en\",\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5517#primaryimage\",\"url\":\"https:\\\/\\\/i0.wp.com\\\/murrayslatter.me\\\/wp-content\\\/uploads\\\/2025\\\/06\\\/Elastisity1.png?fit=822%2C512&ssl=1\",\"contentUrl\":\"https:\\\/\\\/i0.wp.com\\\/murrayslatter.me\\\/wp-content\\\/uploads\\\/2025\\\/06\\\/Elastisity1.png?fit=822%2C512&ssl=1\",\"width\":822,\"height\":512},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5517#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/murrayslatter.me\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Elasticity\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/#website\",\"url\":\"https:\\\/\\\/murrayslatter.me\\\/\",\"name\":\"Murray Slatter\",\"description\":\"Empowering Good teams to be Great!\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/murrayslatter.me\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/#\\\/schema\\\/person\\\/9774d7f727e6b917f43267614574f6d5\",\"name\":\"Murray Slatter\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/8aa0f1751d211918ccc2037a8b3ce22431cec7bef7edf9c993cee70e20717c88?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/8aa0f1751d211918ccc2037a8b3ce22431cec7bef7edf9c993cee70e20717c88?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/8aa0f1751d211918ccc2037a8b3ce22431cec7bef7edf9c993cee70e20717c88?s=96&d=mm&r=g\",\"caption\":\"Murray Slatter\"},\"url\":\"https:\\\/\\\/murrayslatter.me\\\/?author=2\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Elasticity - Murray Slatter","description":"In business and economics, few concepts offer more practical insight for executives than elasticity. Sharpen your skills... and your profits","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/murrayslatter.me\/?p=5517","og_locale":"en_US","og_type":"article","og_title":"Elasticity - Murray Slatter","og_description":"In business and economics, few concepts offer more practical insight for executives than elasticity. Sharpen your skills... and your profits","og_url":"https:\/\/murrayslatter.me\/?p=5517","og_site_name":"Murray Slatter","article_published_time":"2025-06-25T02:52:34+00:00","article_modified_time":"2025-10-05T14:26:42+00:00","og_image":[{"width":822,"height":512,"url":"https:\/\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Elastisity1.png","type":"image\/png"}],"author":"Murray Slatter","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Murray Slatter","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/murrayslatter.me\/?p=5517#article","isPartOf":{"@id":"https:\/\/murrayslatter.me\/?p=5517"},"author":{"name":"Murray Slatter","@id":"https:\/\/murrayslatter.me\/#\/schema\/person\/9774d7f727e6b917f43267614574f6d5"},"headline":"Elasticity","datePublished":"2025-06-25T02:52:34+00:00","dateModified":"2025-10-05T14:26:42+00:00","mainEntityOfPage":{"@id":"https:\/\/murrayslatter.me\/?p=5517"},"wordCount":747,"commentCount":0,"image":{"@id":"https:\/\/murrayslatter.me\/?p=5517#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Elastisity1.png?fit=822%2C512&ssl=1","articleSection":["Mental Models - Financial &amp; Investment"],"inLanguage":"en","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/murrayslatter.me\/?p=5517#respond"]}]},{"@type":"WebPage","@id":"https:\/\/murrayslatter.me\/?p=5517","url":"https:\/\/murrayslatter.me\/?p=5517","name":"Elasticity - Murray Slatter","isPartOf":{"@id":"https:\/\/murrayslatter.me\/#website"},"primaryImageOfPage":{"@id":"https:\/\/murrayslatter.me\/?p=5517#primaryimage"},"image":{"@id":"https:\/\/murrayslatter.me\/?p=5517#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Elastisity1.png?fit=822%2C512&ssl=1","datePublished":"2025-06-25T02:52:34+00:00","dateModified":"2025-10-05T14:26:42+00:00","author":{"@id":"https:\/\/murrayslatter.me\/#\/schema\/person\/9774d7f727e6b917f43267614574f6d5"},"description":"In business and economics, few concepts offer more practical insight for executives than elasticity. Sharpen your skills... and your profits","breadcrumb":{"@id":"https:\/\/murrayslatter.me\/?p=5517#breadcrumb"},"inLanguage":"en","potentialAction":[{"@type":"ReadAction","target":["https:\/\/murrayslatter.me\/?p=5517"]}]},{"@type":"ImageObject","inLanguage":"en","@id":"https:\/\/murrayslatter.me\/?p=5517#primaryimage","url":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Elastisity1.png?fit=822%2C512&ssl=1","contentUrl":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Elastisity1.png?fit=822%2C512&ssl=1","width":822,"height":512},{"@type":"BreadcrumbList","@id":"https:\/\/murrayslatter.me\/?p=5517#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/murrayslatter.me\/"},{"@type":"ListItem","position":2,"name":"Elasticity"}]},{"@type":"WebSite","@id":"https:\/\/murrayslatter.me\/#website","url":"https:\/\/murrayslatter.me\/","name":"Murray Slatter","description":"Empowering Good teams to be Great!","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/murrayslatter.me\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en"},{"@type":"Person","@id":"https:\/\/murrayslatter.me\/#\/schema\/person\/9774d7f727e6b917f43267614574f6d5","name":"Murray Slatter","image":{"@type":"ImageObject","inLanguage":"en","@id":"https:\/\/secure.gravatar.com\/avatar\/8aa0f1751d211918ccc2037a8b3ce22431cec7bef7edf9c993cee70e20717c88?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/8aa0f1751d211918ccc2037a8b3ce22431cec7bef7edf9c993cee70e20717c88?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/8aa0f1751d211918ccc2037a8b3ce22431cec7bef7edf9c993cee70e20717c88?s=96&d=mm&r=g","caption":"Murray Slatter"},"url":"https:\/\/murrayslatter.me\/?author=2"}]}},"jetpack_featured_media_url":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Elastisity1.png?fit=822%2C512&ssl=1","jetpack-related-posts":[{"id":4048,"url":"https:\/\/murrayslatter.me\/?p=4048","url_meta":{"origin":5517,"position":0},"title":"The Role of Data in Pricing Strategy","author":"Murray Slatter","date":"October 2, 2024","format":false,"excerpt":"How Analytics Can Optimize Results In today\u2019s highly competitive and fast-paced business environment, setting the right price for a product or service can make or break a company. Traditional pricing methods, such as cost-plus pricing, often rely on guesswork or outdated models. However, with the advent of data analytics, businesses\u2026","rel":"","context":"In &quot;CoE Marketing&quot;","block_context":{"text":"CoE Marketing","link":"https:\/\/murrayslatter.me\/?cat=93"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/10\/Pricing.jpg?fit=800%2C617&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/10\/Pricing.jpg?fit=800%2C617&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/10\/Pricing.jpg?fit=800%2C617&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/10\/Pricing.jpg?fit=800%2C617&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":5515,"url":"https:\/\/murrayslatter.me\/?p=5515","url_meta":{"origin":5517,"position":1},"title":"Supply and Demand","author":"Murray Slatter","date":"June 15, 2025","format":false,"excerpt":"The Bedrock of Market Strategy In the complex world of economics, no concept is more fundamental\u2014yet more misunderstood\u2014than Supply and Demand. For executives navigating strategy, pricing, product development, or expansion, understanding the dynamic dance between buyers and sellers is crucial. This model isn't just for economists\u2014it's a daily, invisible force\u2026","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Supply-Demand.jpg?fit=1024%2C538&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Supply-Demand.jpg?fit=1024%2C538&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Supply-Demand.jpg?fit=1024%2C538&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Supply-Demand.jpg?fit=1024%2C538&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":5516,"url":"https:\/\/murrayslatter.me\/?p=5516","url_meta":{"origin":5517,"position":2},"title":"Pricing Power","author":"Murray Slatter","date":"June 15, 2025","format":false,"excerpt":"\u201cThe single most important decision in evaluating a business is pricing power.\u201d \u2013 Warren Buffett In the world of capital deployment, pricing power is not just a competitive advantage\u2014it is a revelation. It reveals the moat. It reveals the brand. It reveals the elasticity\u2014or inelasticity\u2014of demand. More importantly, it reveals\u2026","rel":"","context":"In &quot;Master Class&quot;","block_context":{"text":"Master Class","link":"https:\/\/murrayslatter.me\/?cat=17"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Pricing-Basics_2.jpg?fit=1000%2C521&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Pricing-Basics_2.jpg?fit=1000%2C521&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Pricing-Basics_2.jpg?fit=1000%2C521&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Pricing-Basics_2.jpg?fit=1000%2C521&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":5924,"url":"https:\/\/murrayslatter.me\/?p=5924","url_meta":{"origin":5517,"position":3},"title":"What I Am Investing In and Why: Netflix (NASDAQ: NFLX)","author":"Murray Slatter","date":"August 31, 2025","format":false,"excerpt":"1. My Personal Conviction Began Long Before My First Trade Between 2017 and 2019, I subscribed to Netflix not just as a consumer\u2014but as an early observer of a profound structural shift in media. My conviction wasn\u2019t born out of analyst reports or Wall Street models. It was born in\u2026","rel":"","context":"In &quot;Investing&quot;","block_context":{"text":"Investing","link":"https:\/\/murrayslatter.me\/?cat=11"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/08\/IMG_1798.png?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/08\/IMG_1798.png?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/08\/IMG_1798.png?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/08\/IMG_1798.png?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/08\/IMG_1798.png?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":4258,"url":"https:\/\/murrayslatter.me\/?p=4258","url_meta":{"origin":5517,"position":4},"title":"Michael Ball: Real Estate Economics and Finance","author":"Murray Slatter","date":"December 5, 2024","format":false,"excerpt":"Michael Ball is a prominent scholar in the field of real estate economics and finance, renowned for his extensive research on property markets, housing economics, and urban development. His work has provided critical insights into the functioning of real estate markets and the economic factors influencing them. This essay explores\u2026","rel":"","context":"In &quot;Property Development and Management&quot;","block_context":{"text":"Property Development and Management","link":"https:\/\/murrayslatter.me\/?cat=101"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/12\/project-management-property-and-development2.jpg?fit=1080%2C720&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/12\/project-management-property-and-development2.jpg?fit=1080%2C720&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/12\/project-management-property-and-development2.jpg?fit=1080%2C720&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/12\/project-management-property-and-development2.jpg?fit=1080%2C720&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/12\/project-management-property-and-development2.jpg?fit=1080%2C720&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":4040,"url":"https:\/\/murrayslatter.me\/?p=4040","url_meta":{"origin":5517,"position":5},"title":"How to Price for Products","author":"Murray Slatter","date":"October 1, 2024","format":false,"excerpt":"Best Practices and Industry Insights Pricing products effectively can be the difference between thriving in the market and falling behind. While pricing may seem straightforward, it is a multifaceted discipline that requires a balance between cost, value, customer psychology, and market conditions. The right pricing strategy can help a business\u2026","rel":"","context":"In &quot;CoE Marketing&quot;","block_context":{"text":"CoE Marketing","link":"https:\/\/murrayslatter.me\/?cat=93"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/10\/Pricing.jpg?fit=800%2C617&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/10\/Pricing.jpg?fit=800%2C617&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/10\/Pricing.jpg?fit=800%2C617&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/10\/Pricing.jpg?fit=800%2C617&ssl=1&resize=700%2C400 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/murrayslatter.me\/index.php?rest_route=\/wp\/v2\/posts\/5517","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/murrayslatter.me\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/murrayslatter.me\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/murrayslatter.me\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/murrayslatter.me\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5517"}],"version-history":[{"count":2,"href":"https:\/\/murrayslatter.me\/index.php?rest_route=\/wp\/v2\/posts\/5517\/revisions"}],"predecessor-version":[{"id":5814,"href":"https:\/\/murrayslatter.me\/index.php?rest_route=\/wp\/v2\/posts\/5517\/revisions\/5814"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/murrayslatter.me\/index.php?rest_route=\/wp\/v2\/media\/5812"}],"wp:attachment":[{"href":"https:\/\/murrayslatter.me\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/murrayslatter.me\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5517"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/murrayslatter.me\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}