List three (3) advantages to using elasticity as a measurement/analytical tool.

Various advantages accrue to a firm when it uses elasticity as a measurement tool. For instance, it determines the costumers' saving and consumption behavior, which is essential to the suppliers. Secondly, it indicates the industry's health and the consumers' spending pattern that helps the supplier adjust their operations to favor their businesses. Lastly, it determines the effect of changes in price for various commodities in the market. Besides, suppliers can define the perfect price range for their commodities favorable to optimize their profits.