Briefly describe how knowledge of price elasticity among different groups of customers or for various products enable managers to price discriminate, or change different prices for these groups.
The basic idea behind elasticity and revenue is as follows:
-if the good is elasticity (ie elasticity > 1), then the seller may increase revenue by decreasing price.
-if the good is unit elastic (i.e. elasticity = 1), either increasing or ...
This solution explores price elasticity and how knowledge of it can inform managerial decisions.