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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 Summary

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

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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 ...

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