Assess understanding of price elasticity of demand: definition and calculation (including point and midpoint methods), interpretation of elastic vs. inelastic demand, key determinants (substitutes, necessity, time horizon), brief overview of cross-price and income elasticity, and implications for firm pricing decisions—focus on revenue effects, optimal price direction, discounts, bundling, and market segmentation; includes short analytical tasks requiring computation from data and justification of pricing strategies for given elasticity scenarios.