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5.3 Elasticity and Pricing Learning Objectives Analyze how price elasticities impact revenue Evaluate how elasticity can cause shifts in demand and supply Predict how the long-run and short-run impacts of elasticity affect equilibrium Explain how the elasticity of demand and supply determine the incidence of a tax on buyers and sellers Studying elasticities is useful for a number of reasons, pricing being most important

Liu Institute for Behavioral Genetics, University of Colorado Boulder, Boulder, CO, USA Robbee Wedow, David M

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