Demand elasticity is a phenomenon where demand for a specific good or service changes depending on factors such as how it is priced, whether alternatives are available or local income trends.

It's tough enough for a small business to survive in a down economy, to say nothing of achieving hoped-for growth by opening additional locations, expanding a product line or targeting new markets.

Mary Hall is a editor for Investopedia's Advisor Insights, in addition to being the editor of several books and doctoral papers. Mary received her bachelor's in English from Kent State University with ...