If a Firm Knows That the Demand for Its Product

question 65

Multiple Choice

If a firm knows that the demand for its product is inelastic,it could generate more revenue by

• A) Lowering the price, because the resulting change in sales would be relatively large
• B) Raising the price, because the resulting change in sales would be relatively large
• C) Lowering the price, because the resulting change in sales would be relatively small
• D) Raising the price, because the resulting change in sales would be relatively small