Economy, asked by yousufnabeela, 10 months ago

explain why price elasticity of demand is important for firms to consider when setting their prices to ensure that they maximize their profits.

Answers

Answered by saloni766

Answer:

The business firms take into account the price elasticity of demand when they take decisions regarding pricing of the goods. ... On the other hand, if the demand for the product of a firm happens to be inelastic, then the increase in price by it will raise its total revenue.

I hope it will help you..

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