Josh mows lawns.If the demand for lawn-mowing service is elastic and Josh wants to increase his total revenue,he should
A)increase the price of his lawn-mowing service.
B)decrease the price of his lawn-mowing service.
C)reduce the costs of operating his lawn-mowing service.
D)More than one of the above is correct.

Question

Quizplus · Accepted Answer

If the demand for lawn-mowing service is elastic, a decrease in price will lead to a greater increase in demand and thus, an increase in total revenue for Josh. Customers will be more willing to use Josh's lawn-mowing service over other alternatives if the price is lower, and this will ultimately result in a higher total revenue for Josh.

Josh Mows Lawns