Multiple Choice
If a revenue-maximizing firm is told that the price elasticity of demand is equal to one, it should:
A) raise prices 1 percent.
B) lower prices 1 percent.
C) raise prices until the elasticity becomes very high.
D) keep the price where it is.
E) lower prices until the elasticity becomes very high.
Correct Answer:
Verified
Correct Answer:
Verified
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