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    Price Elasticity
    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.

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    Solution Preview

    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 ...

    Solution Summary

    This solution explores price elasticity and how knowledge of it can inform managerial decisions.