1. A clothing producer has determined that the price elasticity of demand for its clothing is 3.2. Based on this information, what should it do to increase total revenue?

Select one:

a. decrease price

b. increase price

c. keep price the same

d. need more information to answer the question

2. If quantity demanded increases by 60% when price decreases by 40%, we can conclude that the good is: Select one:

a. inelastic

b. elastic

c. normal

d. inferior

Answer rating: 100% (QA)

Solution 1 The correct option is A Decrease prices Reason The demand for product is el... View the full answer