how elasticity can be used in producers decision making
Answers
Explanation:
The business firms take into account the price elasticity of demand when they take decisions regarding pricing of the goods. This is because change in the price of a product will bring about a change in the quantity demanded depending upon the coefficient of price elasticity.
Answer:
Business firms take into account the price elasticity of demand when they make decisions regarding the pricing of goods. This is because the change in the price of a product will bring about a change in the quantity demanded depending upon the coefficient of price elasticity. Elasticity is an important economic measure, particularly for the sellers of goods or services, because it indicates how much of a good or service buyers consume when the price changes. ... If the market price goes up, firms are likely to increase the number of goods they are willing to sell. Price elasticity of demand is used to measure the relationship between price and demand, and how changes to one will affect the other. All products will have different responses in consumer demand to price changes. Therefore, it's critical to understand those differences when making important pricing decisions.
Explanation:
pls mark me brainliest