Question

In 2019, ABC Company, the largest company in the funeral business with 14% of total industry revenue, saw its average revenue per service (its product price) rise by 9 per cent.
At the same time, the number of funeral services performed fell by 5.8 per cent. We can thus calculate the price elasticity of demand for its services directly as -(5.8/9) = -0.64.
Its price and quantity demanded last year suggest that its demand is inelastic— and we thus know from this calculation that its total revenue from these services increased.
What should ABC Company do if it wants to raise its total revenue still further?

Answer 1

Answer:

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