Define price elasticity of demand

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Reference no: EM13984959

Price elasticity of demand tells us more about the consumers' purchases than the law of demand.

a. Define price elasticity of demand. How does it differ from the law of demand?

b. Explain why we need to calculate the absolute value of elasticity of demand.

c. If a firm's goal is to increase total revenue, explain what pricing policy you would recommend if you know the demand for the product is elastic.

Reference no: EM13984959

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