Managerial Economics And Business Strategy 9th Edition (without Access Code)
Managerial Economics And Business Strategy 9th Edition (without Access Code)
9th Edition
ISBN: 9781260263176
Author: Michael R. Baye, Jeffrey T. Prince
Publisher: McGraw Hill
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Chapter 3, Problem 6CACQ

You are the manager of a firm that receives revenues of $40,000 per year from product X and $90,000 per year from product Y. The own price elasticity of demand for product X is -1.5 and me cross price elasticity of demand between products Y and X is -1.8. How much will your firms total revenues (revenues from both products) change if you increase the pre of good X by 2 percent?

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