Price Elasticity of Demand Problem:

You are the brand manager for Sensodyne Toothpaste.Suspecting that your product is a premium product versus the competition, you decide to raise the price per tube 10%.A month later, you start receiving the sales data showing the results of this price increase.You calculate that because of the price increase, the quantity of tubes sold decreased 8%.

Is the demand for your product elastic OR inelastic?(You may wish to show a calculation to back up your assessment).

Was this most likely a good decision or bad decision in terms of profits?Why?