A price elasticity of 0.4 means if they hike prices, their total revenue will actually increase, because demand is inelastic—people will still buy it. But the textbook answer feels too neat. My amma buys the same vegetables from the same vendor every day, hiked price or not, but she grumbles so much about his 'tourist rates' that he sometimes throws in a free coriander bunch to keep her coming. So maybe revenue increases, but not without a cost to goodwill that the graph doesn't show.
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