About the price elasticity of cakes for me to be right

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My family in Portugal runs a “cakery” (it’s like a bakery where they only sell cakes). Since I care about my aunts making more money (faster), I keep telling them to raise cake prices. My aunts, on the other hand, tell me raising prices is a sure way to make less money.

What must be true about the price elasticity of cakes for me to be right? Explain.

Reference no: EM131244251

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About the price elasticity of cakes for me to be right : My family in Portugal runs a “cakery” (it’s like a bakery where they only sell cakes). Since I care about my aunts making more money (faster), I keep telling them to raise cake prices. My aunts, on the other hand, tell me raising prices is a sure way..

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