If funeral homes discover that the price elasticity of demand for caskets equals 0.55, funeral homes should increase prices to increase revenue.

Question

Quizplus · Accepted Answer

A price elasticity of demand of 0.55 means that casket demand is relatively inelastic, meaning that a price increase is less likely to result in a significant decrease in demand. This indicates that funeral homes could increase prices to increase revenue.

If Funeral Homes Discover That the Price Elasticity of Demand