One problem in relying on price elasticity and demand curves when setting prices is the way a product or service is marketed can have a profound impact on price elasticity. the underlying ideas of the demand curve and elasticity are less relevant in the modern economy. only economists can properly analyze demand curves and set prices using this tool. competitors can construct the same demand curves, so there is no advantage in using them. marketing split from economics over the ideas of demand and elasticity.

Respuesta :

Answer: the way a product or service is marketed can have a profound impact on price elasticity.

Explanation:

What determines the prices of the market is the demand, this affects the price elasticity. Price elasticity and demand curves are the result of various factors, and in most scenario they determine the pricing factor in the market.

One problem in relying on price elasticity and demand curves when setting prices is the way a product or service is marketed can have a profound impact on price elasticity.