Price elasticity of demand is an important tool for managers in in a selling environment in deciding what to put on sale. Explain how a profit-maximizing manager should decide what goods to put on sale based on the relationship between total revenue and price elasticity of demand. Provide appropriate examples as needed.

Note: Price elasticity of demand: the percentage change in quantity demanded divided by the percentage change in price.

Answer rating: 100% (QA)

Price elasticity of demand PED can be used by a profitmaximizing manager to strategically determine which goods to offer by taking into account the li... View the full answer