3. Mr. Willy is determined to raise his revenue of selling blankets in the market. He is contemplating whether to raise the price of his product or not. He noticed that as he lowered the price from P300 to P200, his sales rose from 300 pieces to 550 pieces of blankets per day. If you are the consultant of Mr. Willy, what would you advise him to raise his revenue and profit? Explain your answer briefly and concisely. (Note: computation is required to justify your answer for this question) Hint: Use the concept of elasticity to answer this question.

3. Mr. Willy is determined to raise his revenue of selling blankets in the market. He is contemplating whether to raise the price of his product or not. He noticed that as he lowered the price from P300 to P200, his sales rose from 300 pieces to 550 pieces of blankets per day. If you are the consultant of Mr. Willy, what would you advise him to raise his revenue and profit? Explain your answer briefly and concisely. (Note: computation is required to justify your answer for this question) Hint: Use the concept of elasticity to answer this question.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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