What does the price elasticity of demand measure

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1. What is cost-plus pricing?

2. What does the price elasticity of demand measure? What is inelastic demand? What is elastic demand?

3. According to the economists' approach to setting prices, the profit-maximizing price should depend on what two factors?

4. Which product should have a larger markup over variable cost, a product whose demand is elastic or a product whose demand is inelastic?

Reference no: EM13903499

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