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

Question

Quizplus · Accepted Answer

When the price elasticity of demand is less than 1, demand is inelastic, meaning that an increase in price will lead to a proportionally smaller decrease in quantity demanded, thus increasing total revenue.

If Funeral Homes Discover That the Price Elasticity of Demand