a-company-finds-that-the-price-elasticity-of-demand-for-its-product-is-25-what-s

Question

A company finds that the price elasticity of demand for its product is 2.5. What strategic decision should the company consider regarding pricing?

Accepted Answer

Consider lowering prices to increase total revenue.

Answer

Consider discontinuing the product due to low demand.

Answer

Maintain current prices as demand is unit elastic.

Answer

Consider raising prices to increase total revenue.