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ELASTICITY OF DEMAND

EXPLAIN WHY ELASTICITY OF DEMAND IS SUCH AN IMPORTANT CONCEPT TO MARKETERS WHO SELL A COMMODITY PRODUCT. WHAT PRICING STRATEGIES WOULD YOU RECOMMEND UNDER THESE CIRCUMSTANCES? JUSTIFY YOUR RECOMMENDATIONS.

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The response addresses the queries posted in 512 words with references.

//Before writing about the importance of 'Elasticity of Demand', it is necessary to gain knowledge about it. One should know about the main concept of Elasticity of demand, which further will assist in analyzing significance effectively//

Elasticity of demand: Importance of the concept for the marketers

Elasticity of demand is defined as the proportional change in one variable due to the proportional change in another variable (Economics for Managers, 2004). The concept of elasticity of demand not only has theoretical importance but also has its practical importance. The concept of elasticity of demand plays a crucial role in the business decisions related to the commodity pricing and responses of consumer with the view to capture large market share or making larger profits. The importance of this concept to the ...

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The response addresses the queries posted in 512 words with references.

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