LISA BETH Mustard Company undertakes an advertising campaign and finds that within the industry's relevant price range, the price elasticity of demand for its own mustard fell from 3.5 to 0.94. As a result, we would expect that LISA BETH
A) would raise its price to increase total revenue
B) would cut its price to increase total revenue
C) would increase output to increase total revenue
D) would increase output to reduce average total cost
E) operates in a perfectly competitive market
Correct Answer:
Verified
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