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I used three examples to attempt solving how firms manage their products with price elasticity factoring with Proctor & Gamble, the oil, and airline industries. I used government examples of how the attempts to collect data to formulate their policies for taxation on elastic and inelastic products while also describing how the US Postal Service uses price elasticity to compete with corporate competition. Exposure to these factors of price elasticity will generate consumers’ awareness of firms and governments role to determine goods or services at a particular price.
Submit a paper of approximately 1,500 words answering the following question: Analyze why the concept of price elasticity important to (a) firms and (b) government?
Price Elasticity is the measure in responsiveness of consumers to changes in the price of a product or service...
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