Science:Math Exam Resources/Courses/MATH104/December 2011/Question 05 (b)
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Question 05 (b) 

In order to increase the revenue, should the price be increased or lowered from $2? 
Make sure you understand the problem fully: What is the question asking you to do? Are there specific conditions or constraints that you should take note of? How will you know if your answer is correct from your work only? Can you rephrase the question in your own words in a way that makes sense to you? 
If you are stuck, check the hint below. Consider it for a while. Does it give you a new idea on how to approach the problem? If so, try it! 
Hint 

Based on the answer to part (a), is the product price elastic or price inelastic? What does that mean in terms of raising or lowering the price? 
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Solution 

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Please rate my easiness! It's quick and helps everyone guide their studies. As , the product is price inelastic and to increase revenue, price should be increased. 