Increasing the price of your product will increase your firm's revenue per unit, but reduce the number of units you can sell. On the other hand, reducing the price of your product will reduce revenue per unit, but increase the number of units you can sell. If your goal is to maximize total revenues, explain how the decision to increase or decrease price depends on the elasticity of demand for your product.

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The price elasticity of demand denotes how changes in the price affect the demand for the product It ... View the full answer