if elasticity is -2 price is 10 and marginal cost, Microeconomics

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if elasticity is -2 price is 10 and marginal cost

If elasticity is -2, price is $10, and marginal cost is $8, should you raise or lower price?

Lower price. Since demand elasticity is greater than 1 (absolute value) revenues will be increased, and since price is above marginal costs profits will increase.

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Microeconomics: if elasticity is -2 price is 10 and marginal cost

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Microeconomics: if elasticity is -2 price is 10 and marginal cost

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