Rubin's Classic Book Shop has been advised that raising prices would lead to higher revenues because his product demand is elastic. The consultant giving this advice should be fired for bad information

Question

Quizplus · Accepted Answer

If demand is elastic, raising prices would actually lead to a decrease in total revenue, not an increase, because consumers would significantly reduce their quantity demanded in response to the price increase.

Rubin's Classic Book Shop Has Been Advised That Raising Prices