QUESTION TWO

The elasticity of demand is a critical concept in managerial economics that helps businesses assess the potential impact of a price increase on sales and revenue. By analyzing the elasticity of demand for a good or service, businesses can make informed decisions and optimize their pricing strategies to maximize revenue and profitability.

REQUIRED;

As a managerial economist describe how the elasticity of demand for a good or service impacts the pricing strategy of a business, and what factors should be considered when analyzing the elasticity of demand for a specific product or service.