Pricing Power

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DEFINITION of 'Pricing Power'

An economic term referring to the effect that a change in a firm's product price has on the quantity demanded of that product. Pricing power ties in with the "Price Elasticity of Demand."

INVESTOPEDIA EXPLAINS 'Pricing Power'

Generally speaking, if a company doesn't have much pricing power then an increase in their prices would lessen the demand for their products.

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