If Carmen's Coffee Company wants to increase total revenue and the price elasticity of demand is 0.43,the company should
A)Increase the price of its coffee.
B)Decrease the price of its coffee.
C)Keep the price constant since a price increase or decrease will cause total revenue to fall.

Question

Quizplus · Accepted Answer

Since the price elasticity of demand is inelastic (less than 1), increasing the price will lead to an increase in total revenue.

If Carmen's Coffee Company Wants to Increase Total Revenue and the Price