Please Explain why the answer is C, with the calculation explanations.
A firm believes it can increase its profits if it increases its revenues. If the price elasticity of demand is 0.88, the firm should
A) increase its price.
B) decrease its price.
rice by 88 percent.
D) leave price unchanged.
Please Explain why the answer is A.
Other things equal, demand is more elastic the
A) less expensive the good.
B) shorter the time period for
adjustment.
C) larger the percentage of a total budget that a family spends on the good.
D) more unique the good is.
The answer is C, please explain why