Introduction
Economists most often use elasticity to measure the variation of variables like price, demand and supply of certain categories of products. By managers having the knowledge about the price elasticity of demand for the company’s products and the factors which influence it, this will offer them a great competitive advantage and this will lead to increased profits and market share (Genchev & Yarkov, 2010). Price elasticity of demand is defined as a measure of the rate of response of the quantity demanded due to a change in price. The formula to calculate this is: give as Price elasticity of demand = Proportionate ...