You sell two different goods: printers and toner catridges. The prices elasticity od demand for the printers is -3.4, and you earn a revenue of RM 15,000 per month from the good. You earn a revenue of RM 5,000 per month from the toner cartriges. The cross price elasticity od 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 revenue for both of the goods
You sell two different goods: printers and toner catridges. The prices elasticity od demand for the printers is -3.4, and you earn a revenue of RM 15,000 per month from the good. You earn a revenue of RM 5,000 per month from the toner cartriges. The cross price elasticity od 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 revenue for both of the goods
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 13CQ: Suppose Erin, the owner-manager of a local hotel projects the following demand for her rooms: a....
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You sell two different goods: printers and toner catridges. The prices elasticity od demand for the printers is -3.4, and you earn a revenue of RM 15,000 per month from the good. You earn a revenue of RM 5,000 per month from the toner cartriges. The cross price elasticity od 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 revenue for both of the goods.
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