If a firm wants to increase revenue, it should decrease the selling price of its product if it is currently producing in the ________ portion of its demand curve.
A) elastic
B) inelastic
C) unit elastic
D) perfectly inelastic

Question

Quizplus · Accepted Answer

In the elastic portion of the demand curve, a decrease in price leads to a proportionally larger increase in quantity demanded, which increases total revenue.

If a Firm Wants to Increase Revenue, It Should Decrease