Company produces and sells product

Reference no: EM131046651

Your company produces and sells Product A, which has an associated elasticity of demand of -1.8. You acquire as a substitute product B, which has an associated elasticity of demand of -2.0. How should you handle pricing?
a. Raise price on both products with a larger increase on Product A.
b. Raise price on both products with a larger increase on Product B.
c. Reduce price on both products with a larger decrease on Product A.
d. Reduce price on both products with a larger decrease on Product B.

Reference no: EM131046651

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