7. how does elasticity affect a company's pricing policy? o a if demand is unitary elastic, the company knows that an increase in price would increase total revenues. o b if demand is elastic at the current price, the company knows that an increase in price would reduce total revenues. o c if demand is inelastic at the current price, the company knows that an increase in price would reduce total revenues. dif demand is unitary elastic, the company knows that a decrease in price would decrease total revenues.