A manufacturer of aluminum doors currently is able to sell 450 doors per week at a price of $85 each. If the price were lowered to $70 each, an additional 60 doors p week could be sold. Estimate the current elasticity of demand for the doors, and also estimate the current value of the manufacturer's marginal-revenue function The elasticity of demand for the doors is approximately (Type an integer or a decimal. Do not round until the final answer. Then round to the nearest hundredth as needed.)

A manufacturer of aluminum doors currently is able to sell 450 doors per week at a price of $85 each. If the price were lowered to $70 each, an additional 60 doors p week could be sold. Estimate the current elasticity of demand for the doors, and also estimate the current value of the manufacturer's marginal-revenue function The elasticity of demand for the doors is approximately (Type an integer or a decimal. Do not round until the final answer. Then round to the nearest hundredth as needed.)

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.7P

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