[nosianu]

What does elasticity matter if you no longer make a profit?

Isn't the only thing that could matter - apart from strategic considerations of financing a loss for a time - if the margins are big enough? Who wants to pay for people to take their products below the full cost of making them, apart from some investor-financed hype startups?

[senorrib]

1) You’re assuming there’s no profit to be made 2) Profit is implicitly embedded in the elasticity curve

[nosianu]

1) No, please learn to read and to comprehend.

I wrote

> Isn't the only thing that could matter ... if the margins are big enough

2) No, the standard price elasticity of demand curve does not directly include profits. It primarily models the relationship between price and quantity demanded.

[nasmorn]

This is what the supply curve describes. For each individual producer there is a hard cutoff but in aggregate these are a curve

[nosianu]

No, the standard price elasticity of demand curve does not directly include profits. It primarily models the relationship between price and quantity demanded.

Supply curve??? The OP wrote "This is confirming demand is more inelastic"