You are the newly appointed sales manager of the Rock Computer Tablets Company and have been charged with the task of increasing revenues. Your economics consultants have informed you that at present price and output levels, price elasticity of demand for your product is less than one. You should:
A. Decrease prices
B. Increase prices
C. Hold prices constant and increase supply
D. Cut advertising expenditures to save money
B. Increase prices
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Why is the long-run aggregate supply curve a vertical line?
A) At that level of real GDP, the production costs are at their lowest level. B) At that level of real GDP, production costs have fully adjusted to price changes. C) At that level of real GDP, the unemployment rate is 0 percent. D) At that level of real GDP, the inflation rate is 0 percent.
A recent issue of the Wall Street Journal headlined a story, "Bond Prices End Lower." From this we can conclude
a. interest rates fell. b. interest rates rose. c. interest rates did not change. d. stock prices fell.
In 2001, the first year of the Bush administration, Americans learned that recessions were a thing of the past
a. True b. False Indicate whether the statement is true or false
Which of the following would shift a market labor supply curve to the left?
a. a decrease in the price of output b. an increase in the price of output c. a labor-augmenting technological change d. better employment opportunities in a closely-related job