Pricing Power
定价权
Pricing power is an economic term that describes the effect of a change in a firm’s product price on the quantity demanded of that product. Pricing power is linked to the Price Elasticity of Demand. Price elasticity is a measure of the degree to which individuals, consumers, or producers change their demand or the amount supplied in response to price changes. For example, if the price of a good goes up, the tendency is that the demand for that good will go down as people will look for cheaper alternatives.