question 12 (1 point) you produce bird houses. if the demand for bird houses is elastic and you want to…

question 12 (1 point) you produce bird houses. if the demand for bird houses is elastic and you want to increase your total revenue, what should you do? you should not change the price of your bird houses. you should increase the price of your bird houses. you should decrease the price of your bird houses. you should not change the price of your bird houses but increase the quantity produced.

question 12 (1 point) you produce bird houses. if the demand for bird houses is elastic and you want to increase your total revenue, what should you do? you should not change the price of your bird houses. you should increase the price of your bird houses. you should decrease the price of your bird houses. you should not change the price of your bird houses but increase the quantity produced.

Answer

Brief Explanations:

When demand is elastic, a change in price leads to a more - than - proportionate change in quantity demanded. Reducing the price will cause a large increase in quantity demanded, resulting in higher total revenue.

Answer:

You should decrease the price of your bird houses.