TB Figure: 1
-TB Figure 1 represents the six distinct steps in the pricing process.In which cell would a firm do price elasticity estimation?
A)A
B)B
C)C

Question

TB Figure: 1 
-TB Figure 1 represents the six distinct steps in the pricing process.In which cell would a firm do price elasticity estimation?
A)A 
B)B 
C)C

Quizplus · Accepted Answer

Price elasticity estimation is typically done during the demand analysis step of the pricing process, which is represented by the second cell (B) in the diagram. This step involves understanding how customers perceive the value of the product and how changes in price will affect demand. Estimating price elasticity is one way to quantify the responsiveness of demand to changes in price, which can be useful for setting the optimal price point.