You are the manager of a firm that receives revenues of $20,000 per year from product X and $80,000 per year from product Y. The own price elasticity of demand for product X is −3, and the cross-price elasticity of demand between product Y and X is −1.6. How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 2 percent? Instructions: Enter your response rounded to the nearest dollar. If you are entering a negative number, be sure to use a (−) sign.
You are the manager of a firm that receives revenues of $20,000 per year from product X and $80,000 per year from product Y. The own price elasticity of demand for product X is −3, and the cross-price elasticity of demand between product Y and X is −1.6. How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 2 percent? Instructions: Enter your response rounded to the nearest dollar. If you are entering a negative number, be sure to use a (−) sign.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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You are the manager of a firm that receives revenues of $20,000 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 2 percent?
Instructions: Enter your response rounded to the nearest dollar. If you are entering a negative number, be sure to use a (−) sign.
$ _____________
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