In economics, price elasticity is a measure of how reactive the marketplace is to a change in price for a given product.

Price elasticity measures how demand changes with price adjustments; key for investment decisions. Investors should focus on companies developing inelastic products for greater pricing power.

The economic concept, which describes consumers’ sensitivity to prices, is a hot topic as inflation soars and executives fret about profits. By Jason Karaian and Veronica Majerol S&P 500 company ...