(prelude)
A firm producing yoghurt is provided with the following price elasticity of demand information for several flavours: strawberry (–0.8), vanilla (–1.0), pineapple (–2.5).
(a)[8]
Explain the pricing policy that the firm ought to use for each flavour if it aims to increase total revenue.
(b)[12]
Explain the factors that would cause demand for all yoghurt types to rise and discuss the extent to which the firm can affect these factors.