Tom and Barbara grow tomatoes for profit, and their business faces a perfectly elastic demand curve. If they wish to increase revenue they should

Question

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In a market with perfectly elastic demand, consumers are willing to buy all they can at a given price but none at a price even slightly higher. Therefore, to increase revenue, Tom and Barbara should keep the price the same but produce and sell more units. Raising the price would result in no sales, lowering the price is unnecessary since demand is perfectly elastic at the current price, and accepting that there is no way to increase revenue ignores the option of increasing production.

Tom and Barbara Grow Tomatoes for Profit, and Their Business