Answer to Question #67707 in Economics of Enterprise for paul
If the firm is experiencing serious cash flow problems and you have to increase total revenue as soon as possible, then our pricing strategy will be built on assumption, that we should increase price for products with inelastic demand and decrease price for products with elastic demand. So, we should increase price for external hard drives and decrease price for laptops to increase total revenue, but the change in price for USB drives will not cause any change in total revenue.
Need a fast expert's response?Submit order
and get a quick answer at the best price
for any assignment or question with DETAILED EXPLANATIONS!