Suppose Swiss Chalet in Moncton knows that the demand for their half-chicken meals is elastic.If the manager wants to increase total revenue from half-chicken meal sales,he should
A)lower the price of a half-chicken meal.
B)not change the price of a half-chicken meal.
C)raise the price of a half-chicken meal.
D)decrease the supply of half-chicken meals.
E)hire fewer employees.

Question

Quizplus · Accepted Answer

When demand is elastic, lowering the price of a product will lead to a proportionally larger increase in the quantity demanded, thereby increasing total revenue.

Suppose Swiss Chalet in Moncton Knows That the Demand for Their