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Any change in product price done by the company will require the company to assess the impact on its quantity demanded. Competitor price changes can
Any change in product price done by the company will require the company to assess the impact on its quantity demanded. Competitor price changes can also influence the demand of the product of the respondent company. This is because of cross-price elasticity. A change in our income tends to make us less price sensitive.Explain the concept of Elasticity - own price elasticity, cross-price elasticity, and Income elasticity with help of suitable examples.
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