A concept of elasticity is very important for manufacturers of
products and services.
It is a very important concept for business and the related
people.
This is because the firms or the manufacturers need to set
prices appropriately in order to maximize their revenues and profit
level.
They must carefully understand the responsiveness of the
quantity demanded to the changes in price in order to influence the
consumer's purchasing activities.
Hence it is very important for the firms to change their prices
of their products very carefully.