Question

If you were selling a product with an elasticity of 1.6 and you wanted to increase your revenue, what should you do to the price?a. Lower priceb. Increase priceC. Do not change price

Answer 1

Answer:

If the product we are selling has an elasticity of 1.6 we should lower the price to increase revenues

Explanation:

Elasticy in demand above 1 means that are elastic goods. So the percentage in the rise in the quantity demanded is superior to the percentage in the fall of the price, so it will increase revenues.