You are the newly appointed sales manager of the rock computer tablets 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

Increase prices.

Explanation:

Price elasticity of demandis a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price when nothing but the price changes. More precisely, it gives the percentage change in quantity demanded in response to a one percent change in price.

If this measure is less than one, a good decision to increase revenues would be increasing prices.

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