A firm started promoting its product through advertising. This changed the product's elasticity from -1.08 to -0.99 . The firm should
a. Lower prices as the demand is more elastic
b. Lower prices as the demand is more inelastic
c. Raise prices as the demand is more elastic
d. Raise prices as the demand is more inelastic
d
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The textbook uses as its precise definition of hyperinflation an inflation rate
A) below zero. B) of less than one percent per year. C) of more than one hundred percent per year. D) of more than one thousand percent per year. E) of more than fifty percent per month.
Suppose when a car wash has 2 washing stations and 5 workers and is able to wash 100 cars per day. When it adds a third station, but no more workers, it is able to wash 150 cars per day. The marginal product of the third washing station is:
a. 100 cars per day. b. 150 cars per day. c. 5 cars per day. d. 50 cars per day.