If demand is flat, then Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a b C d an increase in price will reduce total revenue, indicating little pricing power. an increase in price will increase total revenue, indicating little pricing power. a decrease in price will reduce total revenue, indicating a lot of pricing power. a decrease in price will have no effect on total revenue, indicating no pricing power. Your answer

Answer A, B, and C, with the information provided. Show all work.

Q3

Please read attached article and then use it to answer the following questions. Do companies prefer to sell products that are more elastic or more inelastic?  Briefly explain. What does the article describe as the best way to calculate price elasticity, and what other information is relevant to inform marketing efforts? Suppose a marketing company runs a market test and finds that the price elasticity equals -0.6.  Would a company be more inclined to increase or to decrease price given this elasticity?  Explain what would happen to quantity purchased (by how much it would change) and total revenue (would it increase, decrease, or stay the same) if the company were to decrease price by 10%.