as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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explain why the price elasticity of demand is important for businesses.
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the price elasticity of demand is an important factor for businesses to consider as it helps them understand how sensitive the demand for their product is to price changes. knowing the elasticity of demand helps businesses set prices that optimize their profits and plan strategies to ensure their product remains competitive.
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