Cikli is the manager of a firm that receives a revenue of RM3000 per month from product X and RM7000 per month from product Y. The price elasticity of demand for product X is -2.5 when original quantity (Q) for X and Y are 150 and 175 units, respectively and the cross price elasticity of demand between product X and Y is 1.1. If Cikli increases the price of good X by 1%. a. How much will Cikli’s total revenue change for product X? b. How much is Cikli’s new total revenue for both of the products?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Cikli is the manager of a firm that receives a revenue of RM3000
per month from product X and RM7000 per month from product
Y. The price elasticity of demand for product X is -2.5 when
original quantity (Q) for X and Y are 150 and 175 units,
respectively and the cross price elasticity of demand between
product X and Y is 1.1. If Cikli increases the price of good X by
1%.
a. How much will Cikli’s total revenue change for product X?
b. How much is Cikli’s new total revenue for both of the products?

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