You are a marketing consultant, and your new client is the owner of a small chain of ice cream shops. The client has sold his ice cream at the same price since opening the shops seven years ago. Over time the costs of operating the shops has increased, cutting profits. The client feels he needs to increase his prices but is concerned that increasing prices may not be a good decision. Design a plan to measure price elasticity and thus determine if increasing prices will be good or bad for your client’s profit.

In a role-playing situation, explain to the client what you recommend.