Answer to Question #217769 in Microeconomics for Patricia Nosipho S

Question

As a production of a manufacturing that produces an elastic and inelastic good,illustrate to a new board of the organisation

Answer 1

Inelastic supply tends to involve a price change that results to a smaller proportional quantity supply change. However, elastic supply is the price change that results to a bigger proportional supply change.

When a manufacturing company producing inelastic and elastic goods chooses on increasing total revenue, the firm needs to minimize elastic goods' price and raise inelastic good's price.