Ask Question
BusinessBusiness
24 August, 21:50

If the elasticity of demand for a company's product is estimated to be 1.72, what would you advise the company to do if their objective is to decrease revenue?

+5
Answers (1)
  1. 24 August, 22:13
    0
    Raise price

    Explanation:

    Elasticity of demand refers to the responsiveness of quantity demanded with any change in the price level of the product.

    Here, the elasticity of demand is 1.72 which indicates that the demand for the product is more elastic. This means that a slightly increase in prices would reduce the quantity demanded by the a larger amount.

    Therefore, if this company wants to decrease its revenue then it should raise the price of the product which results in lower quantity demanded and hence, reduction in the revenues.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “If the elasticity of demand for a company's product is estimated to be 1.72, what would you advise the company to do if their objective is ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
KRD Supplies Corporation provided the following information for the year:Beginning Balance-Work-in-Process Inventory $24,000Ending Balance-Work-in-Process Inventory 56,000Beginning Balance-Raw Materials Inventory 83,000Ending Balance-Raw Materials
Answers (1)
In preparing its bank reconciliation for the month of April 2014, Henke, Inc. has the following information available.
Answers (1)
If you have a higher credit score, you are most likely to have a loan with a high interest rate low interest rate
Answers (1)
A debit balance in Allowance for Doubtful Accounts a. is the normal balance for that account b. cannot occur if the percentage of receivables method of estimating bad debts is used c.
Answers (1)
16. Why are professional associations interested in keeping professional standards high? A. Professional associations get paid based on customer reviews. B. Professional associations are forced by law to keep standards high. C.
Answers (1)
New Questions in Business
Miller made a contract to sell his condominium to Jefferson for $80,000. Two days later Miller changed his mind after discovering that he could have sold the property to another buyer for an additional $20,000.
Answers (1)
Before you look for a job, what are three things you should consider about yourself?
Answers (2)
Portfolio investment is defined as A. the diversification of purchasing shares in many companies in one country so that risk is kept to a minimum. B. the purchase of less than 40 percent of the shares of ownership in a company in another country. C.
Answers (1)
Office Palace, Inc., leased an all-in-one printer to a new customer, Ashley, on December 27, 2018. The printer was to rent for $600 per month for a period of 36 months beginning January 1, 2019.
Answers (1)
Philo T. Farmsworth is a corn farmer with a 40-acre tract of land. Each acre can produce 100 bushels of corn. The cost of planting the tract in corn is $20,000, and the cost of harvesting the corn is $10,000.
Answers (1)
Home » Business » If the elasticity of demand for a company's product is estimated to be 1.72, what would you advise the company to do if their objective is to decrease revenue?
Sign Up Forgot Password?