Answer:
A slight increase in price will result in more than proportionate decrease in revenue
Explanation:
All other things being equal, if demand for a product is relatively elastic, then the proportionate change produced in demand is greater than the proportionate change in price of a product.
Since Discount stores sell relatively elastic goods, it is profitable to sell at a relatively low price.
The reason is that, a slight increase in price will lead to more than proportionate reduction in quantity demanded thereby leading to a drastic drop in revenue for Discount Stores
