You are a pricing manager at a generic pharmaceutical distributor. The CEO of the company calls a meeting of and states that it is critical to increase revenue soon or you may have to start laying off employees. You know th elasticity of demand for your leading generic drug is $1\mathrm{.}5$ and you sell it for three times what it costs.

As the pricing manager, you should

argue that the numbers must be off because the company is charging three times the cost of the leading and therefore must be making a profit.

suggest decreasing the price on the leading generic drug to increase revenue.

suggest laying off employees because elasticity of the leading generic drug is unit elastic, so there is $n$ revenue by changing price.

suggest increasing the price on the leading generic drug to increase revenue.