Pricing Power

What Does Pricing Power Mean?
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.

Related Terms

Backpricing
Consumption Capital Asset Pricing Model - CCAPM
Economics
Elastic
Forward Pricing
Hedonic Pricing
Inelastic
Price Basing
Price Elasticity of Demand
Value-Based Pricing
More Related Terms

Related Links

Fundamental Analysis: Qualitative Factors - The Industry - Discover how to research your stock''s value in its specific sector.
Catch On To The CCAPM - This model smooths over some of CAPM's weaknesses to make sense of risk aversion.
The Capital Asset Pricing Model: An Overview - CAPM helps you determine what return you deserve for putting your money at risk.
Pin Down Stock Price With Real Options - How can you assign a value to what a company may do with its business in the future? We explain how it works.
Introduction To Fundamental Analysis - Learn this easy-to-understand technique of analyzing a company's financial statements and reports.

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