Question: What role does elasticity have on decisions made in the market? How does the availability of substitutes affect the price elasticity of demand? Explain using

What role does elasticity have on decisions made in the market? How does the availability of substitutes affect the price elasticity of demand? Explain using examples from your experiences.

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The business firms take into account the price elasticity of demand when they take decisions regarding pricing of the goods This is because change in the price of a product will bring about a change i... View full answer

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