Question

You own a small store. your cashier thinks you should raise prices to increase your total revenue and your customer thinks you should lower prices to increase your total revenue. the cashier thinks the price elasticity of demand is ________ and the customer believes the price elasticity of demand is

Answer 1

Based on the scenario above, the customer thinks the price elasticity if demand is inelastic and that the customer believes that the price elasticity of the demand is elastic. Elastic is being defined as a way of having buyers and sellers to change in regards to price change for a certain good or service while inelastic is being defined as the supply or quality being demanded is not being affected.