Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder

Exercise 11

"Gaining extra revenue is easy for any producer-all it has to do is raise the price of its product." Do you agree? How will the success of the firm's decision to raise price depend on the elasticity of demand for its product? How would this success depend on the availability of close substitutes for the firm's product? (This topic is pursued in much more detail in Parts 3 and 4 of this book).