§6.3 Elasticity approach

COMMUNICATION FROM THE COMMISSION Guidelines for national courts on how to estimate the share of overcharge which was passed on to the indirect purchaser · European Union

(146) The volume effect may also be estimated by combining the price increase observed as a result of the passing-on related price effect with an estimate of the price sensitivity of the relevant demand. As mentioned above, the price sensitivity of demand determines the strength of the relationship between price and demand. For example, if a price increase of EUR 1 is associated with a significant reduction in the quantity purchased, demand is said to be more price sensitive than if the purchase quantity reduction is less important for the same price increase of EUR 1. The so-called price elasticity of demand shows the percentage change in demanded quantity associated with a one percent price increase (109).

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Source: EUR-Lex (Cellar) · retrieved 2026-09-07