is less than the proportionate change in price. A low price elasticity of demand, in some instances, may indicate that a firm or an industry may maximize revenues by raising prices. Alternatively, however, low price elasticity may indicate that a firm or industry enjoys a significant competitive advantage.
A high price elasticity of demand means that the proportionate change in demand is greater than the proportionate change in price. A high price elasticity of demand may indicate, in some instances, that a firm or industry could maximize its revenues by lowering prices. Alternatively, however, it may also indicate that a firm or industry is in a competitive situation from which they may not be able to recover.
Long-term care insurance is a very costly product for the average consumer, regardless of whether a person has a need for the product (Shreve & Van Den Bos, 2004). Long-term care insurance, thus, h
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