Knowledge of PED is important to firms seeking to maximise their revenue
If their product is price inelastic in demand, they should raise their prices
If price elastic in demand, then they should lower their prices.
Firms can choose to use price discrimination to maximise their revenue i.e. lower prices for certain segments and higher prices for others.
Knowledge of PED is important to Governments with regard to taxation and subsidies
If they tax price inelaIstic in demand products, they can raise tax revenue without harming firms too much.
Consumers are less responsive to price changes so firms will pass on the tax to the consumer.
If Governments subsidise price elastic in demand products, there can be a greater than proportional increase in demand.
What strategies can be used to manage stakeholder expectations and ensure their satisfaction?
How do stakeholder relationships impact the success of a project?
What are some common challenges in stakeholder management, and how can they be addressed?
How can stakeholder feedback be incorporated into project planning and execution?
What tools and techniques can be used to identify and analyze stakeholders in a project?