A price elasticity of 0.4 means demand is quite inelastic, beta. If I raise the price of aata or dal by ten percent, the quantity sold only falls by four percent, so my total revenue will actually increase. The obvious answer is that this is good for business, but in my lane, it isn't so simple. If I raise prices on staples, Mrs. Sharma next door will call me *be-imaan* under her breath, and that loss of goodwill costs more than any extra revenue.
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