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    Step-by-step Answer to Price Elasticity

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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.

    © BrainMass Inc. brainmass.com October 10, 2019, 2:22 am ad1c9bdddf
    https://brainmass.com/economics/elasticity/price-elasticity-and-discrimination-374672

    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.

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