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      <image:title>Blog - Qd ÷ ΔP - Example: Hotel Prices (Elastic Demand – PED &gt; 1)</image:title>
      <image:caption>A Hotel raises prices by 10% for the weekend compared to the last weekend. Demand drops by 20% compared to the last weekend, because guests have switched to the competitor. Conclusion: Raising prices could hurt revenues, however may increase profitability.</image:caption>
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      <image:title>Blog - Qd ÷ ΔP - Example: Luxury Handbags (Inelastic Demand – PED &lt; 1)</image:title>
      <image:caption>A high-end brand (e.g., Louis Vuitton) raises prices by 10%. Demand drops only by 2%, because the value of the product is still high and the sensitivity of the consumers are low. Conclusion: Raising prices does not significantly impact volumes, increasing revenues and profits.</image:caption>
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      <image:title>Blog - Qd ÷ ΔP - Price elasticity of demand (PED) is calculated as:</image:title>
      <image:caption>% change in quantity demanded divided by the % change in price</image:caption>
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