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.
In economics, a demand curve is a graph depicting the connection between the value of a certain commodity (the y-axis) and thus the quantity of that artifact that's demanded at that price (the x-axis). Demand curves are used either for the value-quantity relationship for a private shopper (an individual demand curve) or for all customers in a very specific market.
It is mostly assumed that demand curves slope down, as shown in the adjacent image. this will be thanks to the law of demand: for many goods, the number demanded falls if the price rises. Certain uncommon things don't follow this law. These include Veblen goods, Giffen goods, and speculative bubbles wherever buyers are interested in an artifact if its worth rises.
Learn more about Demand Curves here: https://brainly.com/question/1139186
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