<p>If you assume people who are stealing used to be customers and have lower than average PED, then new PED will above the old PED.</p>
<p>There isn't enough information to say what would increase profits. Unlike answering the first part there isn't reasonable additional assumption you can make. You would have to know more precisely how the demand and cost function look to answer that.</p>

CC BY-SA 4.0
2023-12-25T00:21:03.830Z
2023-12-25T00:21:03.830Z
Leeh Mizrahi
<p>Let's assume the price of bread is high. It's PED is &lt;1 so it's inelastic.</p>
<p>As an owner of a bakery and a capitalist, people have started to steal bread from my bakery as it's a necessity.</p>
<p>Where is its PED now, what can it tell me about it? Should I also raise the price to increase my profits?</p>

CC BY-SA 4.0
2023-12-26T20:32:53.283Z
If you lower the price, would they stop stealing? If so then the PED is probably greater than one (i.e. elastic); it might make sense to lower the price.
Daniel
<demand><profits>
PED and Stealing
Advay
# PED and Stealing

(Asked by: username_0 on 2023-12-24)

Let's assume the price of bread is high. It's PED is <1 so it's inelastic.

As an owner of a bakery and a capitalist, people have started to steal bread from my bakery as it's a necessity.

Where is its PED now, what can it tell me about it? Should I also raise the price to increase my profits?

**Tags:** demand, profits

> **Comments:**
> **username_1**: If you lower the price, would they stop stealing? If so then the PED is probably greater than one (i.e. elastic); it might make sense to lower the price.  

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## 1 answers

### Answer by username_2 on 2023-12-25. Score: 2 | Accepted answer

If you assume people who are stealing used to be customers and have lower than average PED, then new PED will above the old PED.

There isn't enough information to say what would increase profits. Unlike answering the first part there isn't reasonable additional assumption you can make. You would have to know more precisely how the demand and cost function look to answer that.


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