If the price-elasticity coefficient for a product is 0.68 and the seller wants to raise revenues by changing its price, then the seller should cut the price of the product.

Question

Quizplus · Accepted Answer

With a price-elasticity coefficient of 0.68, the demand for the product is inelastic, meaning that a decrease in price will lead to a smaller percentage increase in quantity demanded, thus reducing total revenue. To increase revenue, the seller should raise the price.

If the Price-Elasticity Coefficient for a Product Is 0