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Select all the choices that accurately describe how demand elasticity determines the influence of pricing on profitability for online platforms. Multiple select question. If customer
Select all the choices that accurately describe how demand elasticity determines the influence of pricing on profitability for online platforms. Multiple select question. If customer demand for an online platform is elastic, a price increase for users will likely result in an overall loss of revenue as advertising revenue declines in response to fewer users. A shift in user demand for an online platform's services leads to a similar shift in advertiser demand on the platform. Highly elastic customer demand does not decrease overall revenue for online platforms because they earn most of their revenue from advertising. The less customer demand shifts in reaction to price increases for using an online platform, the less it will influence advertising demand for the platform. A smaller customer reaction to price changes makes it more likely that a firm will profit by charging users
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