Knowledge of elasticity for a business..

Is useful.
In economics, elasticity shows to witch the costumers change their demand in a kind of response to the price of the product.

We calculate elasticity as: % change in quantity / %change in price

Important with knowledge because a company needs to know what to do, to get the best, possible income. The companies have to assess changes in consumers demand, as a result of a change of the price. So when the value is bigger than one, it shows that the demand after the good, is affected by the prices. A value that's less than one shows that the demands not sensitive for the price(often inelasticity goods)

The marked for elasticity goods: Good's we have a lot of, with a big marked, ex: food, closes.

Companies have to put down the price, and maybe get under the competition to sell, because the price often decides witch company that sells the most.
Inelasticity: Oil, gas etc. Goods, where the demands are stable, (Things that people need, no matter what.)

Knowledge about the market is really important especially when a business put their product out to the marked.

So then, I also wanted to give you an example for a technique.
To sell a product:
After thorough research the company put the product out, to the market, with a cheap price (the
costumers are now getting to know the new product) then they will set the price up once, then raise the price again, often as far as they can, until the demand will be slightly smaller, (people will not pay as much for the product) and then put it down again. After doing this, the company also have seeing what the customer is willing to pay for the product.