Is the concept of elasticity useful to managers and business owners? Why or why not?

The concept of elasticity is the backbone of any business because managers and business owners have to measure the effect of adjusting the price of their commodity to avoid collapsing their business at the expense of maximizing their output. For example, if the commodity is a normal good, a change in the price of a commodity will affect proportionately the amount of the commodity demanded of that commodity; thus, managers and business owners have to be very keen to avoid making losses after adjusting the prices.