An Economist Estimates That 0

question 117

Multiple Choice

An economist estimates that 0.67 is the price elasticity of demand for disposable diapers. This suggests that disposable diaper producers could:

• A) advertise more to raise the price elasticity of demand.
• B) encourage more parents to use cloth diapers.
• C) lower the price of disposable diapers to raise more revenue.
• D) raise the price of disposable diapers to raise more revenue.