Price Elasticity of demand plays no part in the setting of prices

Question

Quizplus · Accepted Answer

Price elasticity of demand is a crucial factor in setting prices as it determines how responsive consumers will be to changes in prices. A business needs to consider the demand elasticity before setting prices to ensure it maximizes profits by pricing products at a point where customers are willing to buy at a reasonable price and the business can still make a profit.

Price Elasticity of Demand Plays No Part in the Setting