Explain how should the company alter the price

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Using Price Elasticity of Demand to Make Pricing Decisions

All firms can increase the volume of goods or services sold by cutting prices. But the volume (quantity) of goods or services a firm sells differs from a firm's revenues (price times quantity). Select a firm. What good or service does the firm sell? Is the price elasticity of demand elastic or inelastic for that good or service? How should the firm alter the price of the good or service to increase revenues?

 

Reference no: EM1327148

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