Question

Will your answer to question 6 increase or decrease unadjusted cost of goods sold?

Answer 1

If the elasticity is 1.4 at current prices, it is advisable for the company to lower its price on the product.

Step-by-step explanation:

If the elasticity is 1.4 at current prices, it is advisable for the company to lower its price on the product. This is because a decrease in price will be offset by the increase in the amount of the product sold, thus increasing the total revenue.