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The current price for replacing the roof on a single-family home is $8,000. The service provider is currently operating at 40% capacity. Demand is linear
The current price for replacing the roof on a single-family home is $8,000. The service provider is currently operating at 40% capacity. Demand is linear and downward sloping, and the estimated elasticity is 1.5. Which of the following is true? A. decreasing the price by a small amount would increase revenue B. increasing the price by a small amount would increase revenue C. reducing capacity by a small amount would increase revenue D. reducing output would increase revenue E. none of the other choices is necessarily tru
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