You are the manager of a firm that receives revenues of $40,000 per year from product X and $80,000 per year from product Y. The own price elasticity of demand for product X is −1.5, and the cross-price elasticity of demand between product Y and X is −1.8. How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 1 percent?
You are the manager of a firm that receives revenues of $40,000 per year from product X and $80,000 per year from product Y. The own price elasticity of demand for product X is −1.5, and the cross-price elasticity of demand between product Y and X is −1.8. How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 1 percent?
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter7: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 9CQ
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You are the manager of a firm that receives revenues of $40,000 per year from product X and $80,000 per year from product Y. The own price
How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 1 percent?
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