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Pricing strategies based on the demand curve's elasticity

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What can you say about the elasticity of the demand curve that faces the product (or service) produced by an organization? How much control might an organization have over pricing based on a product's elasticity? Recommend a pricing strategy to increase revenue.

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This solution explains why goods and services produced by different firms have different price elasticities of demand. The solution also recommends pricing strategies to increase a firm's revenue based on the elasticity of its demand curve. The explanation is given in 241 words.

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Problem: What can you say about the elasticity of the demand curve that faces the product (or service) produced by an organization? How much control might an organization have over pricing based on a product's elasticity? Recommend a pricing strategy to increase revenue.

Solution:
If a product has many close substitutes, its demand curve is elastic. The demand curve for coffee is elastic because if the price of coffee rises, ...

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