How does demand elasticity affect a business? a consumer? how can knowing the elasticity of demand for a product affect pricing decisions? purchasing decisions?

1.Price elasticity of demand affects a business's ability to increase the price of a product. Elastic goods are more sensitive to increases in price, while inelastic goods are less sensitive.

2.

Income elasticity measures the responsiveness of demand to a change in income. Cross price elasticity of demand measures the responsiveness of quantity demanded to a change in price of another good. Demand elasticity of make pricing decision will define how the market will react to changes in price.

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for the points : )

explanation:

b)

it created free trade throughout the colonial territories.