Price elasticity of demand
How strongly the quantity people buy responds to a change in price.
Elasticity above 1 means demand is elastic: a small price cut brings a large jump in orders. Below 1, demand is inelastic and price changes barely move volume, which usually means you have room to charge more.
Total revenue peaks where elasticity equals 1, at the midpoint of a straight-line demand curve. In practice you rarely know where that point sits, so a price test measures it directly on your own store. More in at what price is total revenue maximized.
Put it to the test on your store
Test prices, themes, pages, shipping and checkout on Shopify, then ship the winning variant.
