ANALYSIS OF DEMAND ELASTICITY OF SMALL ENTERPRISES UNDER CONDITIONS OF ECONOMIC INSTABILITY

Abstract

The article examines the features of the formation of elasticity of demand of small enterprises in conditions of economic instability, which is characterized by inflationary processes, fluctuations in incomes of the population and increasing uncertainty. The relevance of the topic is determined by the fact that small business is the most vulnerable segment of the economy to external crises due to limited financial resources and high dependence on consumer demand. The purpose of the study is to analyze the elasticity of demand and determine the key factors that influence consumer behavior in crisis conditions. The methodological basis is a systematic approach, economic and mathematical modeling, comparative analysis and generalization of statistical data. According to the results of the work, it was established that in conditions of economic instability, demand becomes more elastic, as consumers switch to a rational model of behavior, focusing on price and alternative offers. The key influencing factors are identified: income level, price, competition and availability of substitute goods. It should also be noted that in conditions of economic instability, the structure of consumer demand changes significantly. Households are beginning to pay more attention to basic goods and services, reducing spending on non-essential goods. This forces small businesses to adapt their assortment policy, focusing on products with more stable demand and high price accessibility. The speed of business response to changes in market conditions also plays an important role, since a delay in adjusting prices or offers can lead to a loss of competitive positions. In addition, the development of digital technologies and online trading has a significant impact on the elasticity of demand, which expands consumers' opportunities to compare prices and search for alternatives. This increases the price sensitivity of demand and increases competition between small businesses even in local markets. As a result, businesses are forced to implement digital marketing tools, loyalty programs, and flexible discount systems. Therefore, adaptation to the digital environment is becoming one of the key factors for the survival of small businesses in an unstable economy. The practical significance lies in the formation of recommendations for the pricing policy of small businesses and increasing their resilience in conditions of instability.