Generally speaking, managers should set higher prices when demand is elastic and lower prices when demand is inelastic.

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Managers should set lower prices when demand is elastic and higher prices when demand is inelastic. This is because when demand is elastic, consumers are more sensitive to changes in price and will react by buying less if the price is too high. Conversely, when demand is inelastic, consumers are less sensitive to changes in price and will continue to buy even if the price is raised. Therefore, a higher price will result in higher revenue for the company, while a lower price may not result in significantly more sales.

Generally Speaking, Managers Should Set Higher Prices When Demand Is