THE IMPACT OF DEMAND ELASTICITY ON PRICING STRATEGY
DOI:
https://doi.org/10.55640/Keywords:
demand elasticity, pricing strategy, elastic demand, inelastic demand, unit elastic demand, total revenue.Abstract
Pricing strategy is very important for buyers and sellers. The elasticity theory of demand and supply is a fundamental economic concept that explains how price changes affect the quantity demanded and supplied of a product or service. This paper explores the real-world application of the elasticity theory of demand. Specifically, it examines how different market factors affect the elasticity of demand and how firms and policymakers can use elasticity theory to optimize pricing strategies, increase revenue, and achieve policy objectives. Moreover, in this article, the complexity of price elasticity of demand and its impact on setting price are given.
References
1.Gregory Mankiw's book, " Principles of Economics", 87-93 pages, 10th edition
2.Sh. Shodmonov, M. Rahmatov. "Iqtisodiyot nazariyasi", 293-302 pages.
3.https://lingarogroup.com web site
4.https://www.r-studio.com web site
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