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Describe how price elasticity of demand works in economics. Use the price elasticity of demand formula: % change in quantity / % change in price.

Describe how price elasticity of demand works in economics. Use the price elasticity of demand formula: % change in quantity / % change in price. Why and for who is it important to determine this formula? Provide a real life example and determine whether the example is elastic or inelastic. How do businesses maximize profits using this formula..

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