What this means for its pricing policy and choice of sales

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Clark Marketing Services has found, through market tests, that the demand for Sonya's Peanuts has a price elasticity of 0.5 and an income elasticity of 1.8. You, an economist employed by Sonya's Peanuts, have been asked by the executives of the company to explain what this means for its pricing policy and choice of sales outlets. Company executives have been thinking of lowering the firm's prices and concentrating on selling to discount stores. What do you advise? Explain in a paragraph.

Reference no: EM131182042

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