Just a year after you launched the expansion of DWJ, inflation has raised your marginal cost by 7% from $198.33 to $212.21. Your elasticity varies for each of the three regions in which you sell your DWJ brand. In the southwestern region, your elasticity is -2.76. In your upper-western region the elasticity is -3.50. In your New England region the elasticity is -5.76. Use %ΔQd/%ΔP = e to estimate the percentage decrease in quantity demanded if you were to raise prices in all three regions by 7%. (Do not include the negative sign when recording your answer.) a. %ΔQd Southwestern b. %ΔQd Upper-western c. %ΔQd New England
Just a year after you launched the expansion of DWJ, inflation has raised your marginal cost by 7% from $198.33 to $212.21. Your elasticity varies for each of the three regions in which you sell your DWJ brand. In the southwestern region, your elasticity is -2.76. In your upper-western region the elasticity is -3.50. In your New England region the elasticity is -5.76. Use %ΔQd/%ΔP = e to estimate the percentage decrease in quantity demanded if you were to raise prices in all three regions by 7%. (Do not include the negative sign when recording your answer.) a. %ΔQd Southwestern b. %ΔQd Upper-western c. %ΔQd New England
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Just a year after you launched the expansion of DWJ, inflation has raised your marginal cost by 7% from $198.33 to $212.21. Your elasticity varies for each of the three regions in which you sell your DWJ brand. In the southwestern region, your elasticity is -2.76. In your upper-western region the elasticity is -3.50. In your New England region the elasticity is -5.76.
Use %ΔQd/%ΔP = e to estimate the percentage decrease in quantity
a. %ΔQd Southwestern
b. %ΔQd Upper-western
c. %ΔQd New England
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