Other things being equal, the lower the value of elasticity:

A) the less likely the profitability of a price increase.
B) the more likely the profitability of a price increase.
C) the greater the responsiveness in quantity demanded to a price change.
D) the lower the corresponding increase in firm revenue.

Elasticity

A measure in economics that quantifies how a change in one variable, like price, affects the quantity demanded or supplied of a good or service.

Price Increase

An uptick in the cost of goods or services commonly caused by factors such as inflation, increased production costs, or supply and demand shifts.

Profitability

The degree to which a company or economic activity yields profit or financial gain, often measured as a ratio or percentage of revenue.