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Price Point Impact. Even with a linear demand curve, price elasticity for any product. (including tobacco) varies as the price for that product varies. De-. mand tends to be relatively inelastic at lower price levels (due to. smaller income effects), but grows more elastic as price increases.
Some economists said that outside the oil price effect, there was little sign of inflation. âº FINANCE the influence that a change in interest rate has on bond prices: If there is a negative price effect, an interest rate increase will lower the price of the bond. (Definition of âprice effectâ from the Cambridge Business English Dictionary Â© Cambridge University Press) What is the pronunciation of price effect? Browse