bridget asked in Social ScienceEconomics · 1 month ago

how can a firm increase its profit if the elasticity of demand for its product is less than one?

1 Answer

  • JuanB
    Lv 7
    1 month ago
    Favourite answer

    When Inelastic demand they just start gouging you.  They don't care, just jack up the price.  What you going to do?

    Answer: increase price.  Elasticity of demand less than one is green light to increase price and it's all profit

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