The Teenager Company makes and sells skateboards at an average price of $70 each

Question

The Teenager Company makes and sells skateboards at an average price of $70 each. During the past year, they sold 4,000 of these skateboards. The company believes that the price elasticity for this product is about -2.5. Which of the following would be the best option for the company?

Raise the price and plan to increase the quanity supplied

Lower the price and plan to increase the quantity supplied

Raise the price and plan to decrease the quantity supplied

Lower the price and plan to decrease the quantity supplied

Explanation / Answer

The Teenager Company makes and sells skateboards at an average price of $70 each... Which of the following would be the best option for the company?

Lower the price and plan to increase the quantity supplied

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