You sell two different goods: printers and toner cartridges. The price elasticityof demand for the printers is -3.4, and you earn a revenue of RM15,000 permonth from the good. You earn a revenue of RM5,000 per month from thetoner 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 yournew total revenues for both of the goods.[Anda menjual dua barang berbeza: pencetak dan kartrij toner. Keanjalan harga permintaanuntuk pencetak adalah -3.4, dan anda memperoleh jumlah hasil sebanyak RMI5,000 sebulanuntuk barang tersebut. Anda memperoleh jumlah hasil RMS5,000 sebulan untuk kartrij toner.Keanjalan permintaan silang bagi kedua-dua barang adalah -2.5. Sekiranya anda membuatkeputusan untuk menurunkan harga pencetak sebanyak 5%, hitung jumlah hasil baharu andauntuk kedua-dua barang tersebut.]

(I) printer: Revenue before price increase (Rp0) = P0 x Q0 = Rm 15,000 Own-price elasticity of…

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.

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.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 8PA: The New York Times reported (Feb. 17, 1996) that subway ridership declined after a fare increase:...

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