Mr. and Mrs Wood both own a bakery. Mr. Wood is thinking of…
Mr. and Mrs Wood both own a bakery. Mr. Wood is thinking of raising the prices of their products in order to buy a new oven for the bakery. However, Mrs. Wood is of the opinion that total revenue will fall if the prices increase. One can conclude that Mr Wood believes that the demand for the products is (elastic, inelastic), and his wife thinks that the demand is (elastic, inelastic).