Question

You have just been hired as a business consultant to determine what pricing policy would be appropriate to increase the total revenue of a bakery. the first step you would take would be to

a. increase the price of every loaf of bread in the store.

b. look for ways to cut costs and increase profit for the bakery.

c. determine the price elasticity of demand for the bakery's products.

d. determine the price elasticity of supply for the bakery's products.

Answer 1

The correct answer is c. determine the price elasticity of demand for the bakery's products.