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Nitella [24]
4 years ago
5

The local bakery makes such great cinnamon rolls that consumers do not respond much at all to a change in the price. If the owne

r is only interested in increasing revenue, she should
a. lower the price of the cinnamon rolls.
b. reduce costs.
c. raise the price of the cinnamon rolls.
d. leave the price of the cinnamon rolls unchanged.
Business
1 answer:
mario62 [17]4 years ago
8 0

Answer:

c. raise the price of the cinnamon rolls.

Explanation:

1% increase in the price will have less 1% decrease in demand, when prices are inelastic supply can increase prices to increase revenue up until the point the marginal costs = marginal revenue

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