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you are the newly appointed sales manager of the Rock Record Company and have been charged with the task of increasing revenues. Your economics consultants
you are the newly appointed sales manager of the Rock Record Company and have been charged with the task of increasing revenues. Your economics consultants have informed you that at present price and output levels, price elasticity of demand for your product is less than one. You should:
cut advertising expenditures to decrease the demand for these records.
hold prices constant and increase supply.
increase prices.
decrease prices.
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