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a firm learn that the own price of elasticity of a product it manufactures a 3.5 what would be the correct

User Pernilla
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Answer: Lower the price because demand for the good is elastic.

Step-by-step explanation:

The good is elastic because the elasticity is more than 1. What this means is that when the price of the good is reduced by 1%, the demand of the good will increase by 3.5%.

If the company wishes to raise revenue therefore they should reduce their prices because more people would then buy the goods and the number of more sales would lead to higher revenue.

User Ken Mueller
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