The campus bookstore has reduced prices on pens and pencils in order to increase total revenue from sales of these items. Therefore, the manager of the campus bookstore believes that the demand for pens and pencils at the bookstore is

Question

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If the bookstore's goal is to increase total revenue by reducing prices, it suggests that demand is likely to be elastic. In other words, customers are likely to be responsive to a change in price and may buy more pens and pencils in response to the price reduction. If demand were inelastic, reducing prices might not lead to a significant increase in sales and could actually decrease total revenue.

The Campus Bookstore Has Reduced Prices on Pens and Pencils