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price elasticity of demand

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A What is the definition of price elasticity of demand?
b. Explain the relationship between price elasticity and total revenue? How does price elasticity of demand affect a firmâ??s pricing decisions?
c. How does the availability of substitutes affect price elasticity of demand? Provide examples. Please relate the concepts to your personal experience and/or professional experience

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Solution Summary

The relationship between price elasticity and total revenue is shown.

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