This is a multiple-choice question, which belongs to the futures qualification examination. When commodities are flexible, it will lead to price increase, greatly reduce demand, reduce the number of commodities sold, and reduce sales revenue.
Price elasticity indicates the dependence of supply and demand on price changes and reflects the corresponding change rate of supply and demand caused by price changes, that is, the sensitivity of supply and demand to price information, also known as price elasticity of supply and demand. The price of commodity itself, the income of consumers, the price of substitutes and consumers' hobbies will all affect the demand for commodity consumption. Price elasticity refers to the change of demand caused by the change of commodity price when these factors remain unchanged. In the case of elastic demand, price reduction will lead to a corresponding increase in purchase volume, thus increasing consumers' monetary expenditure on the commodity; On the contrary, rising prices will reduce consumers' monetary expenditure on this commodity. When the elasticity of demand is equal to 1, the price reduction will not cause the change of consumers' monetary expenditure on the commodity.
Price elasticity depends on the number of commodity substitutes and their correlation (that is, substitutability), the importance of commodities in the buyer's budget, the use of commodities and other factors. Price elasticity is mainly used in enterprise decision-making and government economic decision-making
Price elasticity refers to the ratio between the percentage change of sales volume and the percentage change of price, and it is a sensitive index to measure the quantity change caused by price change. When the elastic coefficient is 1, the increase of sales volume and the decrease of price cancel each other out. When the elasticity is between 0 and 1, which means that the price increase will also increase the income, while the price reduction will reduce the income, we say that the demand for such goods is relatively inelastic, or the price is insensitive. The demand elasticity of most foods is low, while the demand elasticity of most luxury goods such as perfume and high-end clothing is relatively high.
Calculation formula of elastic coefficient: ε= (△Q/Q)/(△P/P)= -(P×dQ)/(Q×dP)