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It is important because if a company doesn't understand their product's elasticity of demand, they are screwed!

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15y ago

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Related Questions

What are importance of elasticity of demand in economics?

Importance of elasticity in economics


What is the importance of price elasticity to a cellphone dealer?

what are the importants of price elasticity of demand to a cellphone dealer


What is importance of elasticity?

Cross elasticity of demand is the responsiveness of demand for one product to a change in the price of another product. It will help predicts how prices of products will act.


What is importance of cross elasticity?

Cross elasticity of demand is the responsiveness of demand for one product to a change in the price of another product. It will help predicts how prices of products will act.


Importance of cross elasticity of demand?

Cross elasticity of demand is sometimes written as XED. In business the cross elasticity of demand is important because it will help determine whether or not it is a good move to increase or decrease prices or to substitute one product for another for the purpose of revenue.


What are the 3 types of elasticity?

1)price elasticity of demand 2)income elasticity of demand 3)cross elasticity of demand


If the elasticity of demand is equal to one then the demand is?

Unitary elasticity is when the price elasticity of demand is exactly equal to one.


Distinguish between price and income elasticity of demand?

distinguish between price elasticity of demand and income elasticity of demand


What is the importance of price elasticity of demand in decision making with regards to choosing the best pricing strategy to maximize revenue?

Supply + Demand = Price


Method for measurement of Elasticity of Demand?

there are three methods of measuring elasticity of demand


Would the concepts of cross elasticity of cross elasticity of demand and income elasticity of demand be of any interest to a pharmaceutical company?

I am at a loss for the answer please help me.


Cross elasticity of demand?

In economics , the cross elasticity of demand and cross price elasticity of demand measures the responsiveness of the quantity demand of a good to a change in the price of another good.