ahmed asked in Social ScienceEconomics · 8 years ago

examples for how could a business could benefit from estimating its demand elasticities?

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  • Anonymous
    8 years ago
    Favorite Answer

    The more inelastic the demand the less likely it will be affected by an increase in price. So, if a business estimates that their product has an inelastic demand they can charge more. If it is elastic, they need to be more sensitive to the price that they are charging.

  • Anonymous
    8 years ago

    If the demand is inelastic,it can increase price, not reduce it.

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