This section helps you understand pricing, demand, and incentives.
The ability to raise prices without wrecking demand is a sign of business strength.
Real life: Apple can price above peers because buyers perceive differentiated value, trust the ecosystem, and accept the premium.
It tells you how sensitive demand is to price changes.
Real life: Generic gasoline is often relatively inelastic for commuters. Luxury handbags are different: price can reinforce the signal.