You have just bought a company that publishes cookbooks. You consulted your in-house economist. The conversation goes like this: He tells you that the elasticity of demand for your cookbooks is -2.4. Then you tell him that you want to maximize sales revenue. He tells you that you should raise the price of the cookbooks. Then you tell him that you are investing the first month of his pay raise in lottery tickets to improve your business chances. Explain your reaction. True or False, Your reaction recognises the fact that cookbooks face an inelastic demand. Therefore, to maximize revenues it is better if you lower prices. Question 21Answer True False