Final answer:
To increase total revenue with an elastic demand for his lawn-mowing service, Josh should lower his prices. A price reduction would lead to a greater percentage increase in quantity demanded, boosting his total revenue.
Step-by-step explanation:
If Josh mows lawns and the demand for lawn-mowing service is elastic, he should lower his prices in order to increase his total revenue. When the demand is elastic, a decrease in price will lead to a more than proportionate increase in the quantity demanded. Therefore, lowering the prices would result in a larger increase in the number of lawns mowed, which would, in turn, increase Josh's total revenue.
Should Josh find that he's reached the maximum capacity of lawns he can mow, similar to the band reaching a full arena, and the demand remains elastic, it might suggest exploring ways to increase capacity (e.g., hiring help) if it's economically feasible. However, if expanding capacity adds significant costs or is not possible, this strategy may need to be reassessed.