You produce bird houses.If the demand for bird houses is elastic and you want to increase your total revenue,what should you do
A)You should increase the price of your bird houses.
B)You should decrease the price of your bird houses.
C)You should not change the price of your bird houses.
D)You should not change the price of your bird houses but increase the quantity produced.

Question

Quizplus · Accepted Answer

When the demand for bird houses is elastic, a decrease in price will increase the quantity demanded significantly and raise total revenue. Therefore, lowering the price of bird houses is the best option to increase total revenue.

You Produce Bird Houses