Summary
The Default Price Elasticity Settings allow you to set up some default price elasticity settings to help model how increases in prices will affect demand
It is accessible through the Admin --> System Configuration --> Default Price Elasticity Settings
The settings are as follows
- Price Elasticity Type - Whether or not you want price elasticity settings turned on or not
- Elasticity To Use- The negative slope of the demand line in response to increase in price. This is typically a value in the 0 to -5.0 range. Note this is always negative because as price increases, demand will go down