If the U.S. Postal Service increases the price of first-class mail to generate additional revenues, it estimates that the demand for mail is relatively elastic.

Question

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If the U.S. Postal Service estimates that increasing the price of first-class mail will generate additional revenues, it implies that the demand for mail is relatively inelastic, meaning consumers' demand does not decrease significantly with a price increase.

If the US Postal Service Increases the Price of First-Class Mail to Mail