Kevin’s goal as a business manager is to increase total sales in dollar terms for his business. Should he raise or lower his prices? a raise prices if demand is elastic; lower prices if demand is inelastic b lower prices if demand is elastic; raise prices if demand is inelastic c raise prices regardless of whether demand is elastic or inelastic. d lower prices regardless of whether demand is elastic or inelastic.
Kevin’s goal as a business manager is to increase total sales in dollar terms for his business. Should he raise or lower his prices? a raise prices if demand is elastic; lower prices if demand is inelastic b lower prices if demand is elastic; raise prices if demand is inelastic c raise prices regardless of whether demand is elastic or inelastic. d lower prices regardless of whether demand is elastic or inelastic.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question 17
Kevin’s goal as a business manager is to increase total sales in dollar terms for his business. Should he raise or lower his prices?
a
raise prices if demand is elastic; lower prices if demand is inelastic
b
lower prices if demand is elastic; raise prices if demand is inelastic
c
raise prices regardless of whether demand is elastic or inelastic.
d
lower prices regardless of whether demand is elastic or inelastic.
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