Why is the concept of price elasticity of demand an important concept in business management?

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The concept of price elasticity of demand is a very important concept in management because it helps managers know how to price the goods or services that they sell. 

The law of demand states that consumers will be willing and able to buy less of a product as the product’s price goes up.  However, the law of demand does not tell us how much less of the product customers will buy if the price goes up...

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