You are the manager of firm Equis. Firm Zeta is your main competitor. You have the following information about your firm: price elasticity of demand is-1.25 income elasticity is 0.43, and cross-price elasticity between your firm and firm Zeta is 1.22. One of your subordinates approaches you with the proposal of temporarily lowering the price of your product in an effort to increase sales revenue. Which of the following statements is true? OA. Firm Equis sells a luxury good. OB. Firm Equis sells an inferior good. O C. If your goal is to increase sales revenue, you should not follow this recommendation D. If your goal is to increase sales revenue, you should follow this recommendation. OE. None of the above lection
