Explain Why It Is So Important for a Business to Understand

question 73

Essay

Explain why it is so important for a business to understand the concept of price elasticity and be able to measure this for its products.

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Definitions:

High-Performance Work Practices

A set of management practices that aim to enhance organizational performance by improving employee involvement, commitment, and competencies.

Competitive Advantage

A condition or circumstance that puts a company in a favorable or superior business position compared to its competitors.

Human Capital

Human capital represents the knowledge, skills, competencies, and attributes embodied in individuals that facilitate the creation of personal, social, and economic well-being.

Triple Bottom Line

An accounting framework that incorporates three dimensions of performance: social, environmental, and financial.