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 business application of price elasticity of demond


Business-to-business Price Segmentation-Outlined and Explained
The central premise of price segmentation, especially in business-to-business environments, is that pricing should be consistent for similar deals. The process

business application of price elasticity of demond  result. For example, a business considering a price increase of its product might find that doing so lowers profits if demand is highly elastic, as sales would fall sharply. Similarly, a business considering a price cut to its product might find that it does not increase sales if demand for the product is price-inelastic. While price elasticity explains differences in price response, determining it and applying it to transactional pricing, especially in B2B enterprises, is extremely difficult. Some price

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