a-company-decreases-the-price-of-its-product-from-30-to-25-and-total-revenue-inc

Question

A company decreases the price of its product from $30 to $25, and total revenue increases. What should the company do to maximize revenue?

Accepted Answer

Continue decreasing the price, as demand is elastic.

Answer

Maintain the current price, as demand is unit elastic.

Answer

Discontinue the product, as demand is perfectly elastic.

Answer

Increase the price, as demand is inelastic.

A company decreases the price of its product from \$30 to \$25, and total revenue increases. What should the company do to maximize revenue?