You sell two different goods: printers and tonercartridges. The price elasticity of demand forthe printers is -3.4, and you earn a revenue ofRM15,000 per month from the good. You earn arevenue of RM5,000 per month from the tonercartridges. The cross price elasticity of demandfor both of the goods is -2.5. If you decide todecrease the price of the printers by 5%,calculate your new total revenues for both of thegoods.[Anda menjual dua barang berbeza: pencetak dan kartrijtoner. Keanjalan harga permintaan untuk pencetakadalah -3.4, dan anda memperoleh jumlah hasil sebanyakRM15,000 sebulanmemperoleh jumlah hasil RM5,000 sebulan untuk kartrijtoner. Keanjalan permintaan silang bagi kedua-duabarang adalah -2.5. Sekiranya anda membuat keputusanuntuk menurunkan harga pencetak sebanyak 5%, hitungjumlah hasil baharu anda untuk kedua-dua barangtersebut.](c)untuk barang tersebut. Anda

Price elasticity of demand quantifies how responsive buyers are to shifts in a product's price. A…

(c) You sell two different goods: printers and toner cartridges. The price elasticity of demand for the printers is -3.4, and you earn a revenue of RM15,000 per month from the good. You earn a revenue of RM5,000 per month from the toner cartridges. The cross price elasticity of demand for both of the goods is -2.5. If you decide to decrease the price of the printers by 5%, calculate your new total revenues for both of the goods.

(c) You sell two different goods: printers and toner cartridges. The price elasticity of demand for the printers is -3.4, and you earn a revenue of RM15,000 per month from the good. You earn a revenue of RM5,000 per month from the toner cartridges. The cross price elasticity of demand for both of the goods is -2.5. If you decide to decrease the price of the printers by 5%, calculate your new total revenues for both of the goods.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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YOU SELL TWO DIFFERENT GOODS PRINTERS AND CARTRIDGES. THE PRICE ELASTICITY OF DEMAND FOR THE PRINTERS IS -3.4 AND YOU EARN A REVENUE OF RM 15000 PER MONTH FROM THE GOOD. YOU EARN A REVENUE OF RM 5000 PER MONTH FROM TONER CARTRIDGES. THE CROSS PRICE ELASTICITY OF DEMAND FO BOTH OF THE GOODS IS -2.5. IF YOU DECIDE TO DECREASE THE PRICE BY 5%, CALCULATE YOUR NEW TOTAL REVENUE FOR BOTH GOODS.
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