Suppose that you are in charge of pricing at a local sandwich shop.The business needs to increase revenue and your job is on the line.What should you do
A)If the demand for sandwiches is elastic, increase the price of sandwiches.
B)If the demand for sandwiches is elastic, decrease the price of sandwiches
C)If the demand for sandwiches is inelastic, do not change the price of sandwiches
D)If the demand for sandwiches is inelastic, decrease the price of sandwiches.

Question

Quizplus · Accepted Answer

If the demand for sandwiches is elastic, decreasing the price of sandwiches will increase the quantity demanded, leading to an increase in total revenue. This will help the business to make more money, and in turn, secure your job. However, if the demand for sandwiches is inelastic, decreasing the price may not have a significant impact on increasing revenue, so it is best not to change the price at all.

Suppose That You Are in Charge of Pricing at a Local