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 Yand X is -1.6.

Required information 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 products Y and X is −1.6. Suppose you increase the price of good X by 2 percent.   Assume that the information about product X and product Y from the problem changed to the following:   Revenues per year from product X $ 15,000 Revenues per year from product Y $ 80,000 Own price elasticity of demand for product X   −3 Cross-price elasticity of demand between products X and Y   −1.4 Price increase of product X (percent)   3     Instruction: Update the data in your spreadsheet to the values above and enter the recomputed answer for the original question. Required: How much will your firm’s total revenues (revenues from both products) change? Change in revenues: ____________________

You are the manager of a firm that receives revenues of $60,000 per year from product X and $80,000 per year from product Y. The own price elasticity of demand for product X is -1.5, and the cross- price elasticity of demand between product Yand X is -1.4. 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. Use a negative sign (-) if applicable. %24

3) You make a lightweight compact foldable windbreaker. Your brand, Desert Wind Jackets, is well established in the Southwest. In a drive to broaden your appeal and open new markets, you have rebranded under the simple logo DWJ. The strength of your brand, loved by your customers in the Southwest, means you have a price elasticity on demand of -2.76. Market research indicates that in the Upper West, where there is some knowledge of your brand, the price elasticity of demand is -3.50. In New England, where you are least known, it is estimated that the price elasticity of demand will be quite high, -5.76. Your marginal cost per jacket is $198.33. (ROUND TO THE NEAREST WHOLE DOLLAR) a) What price will you charge in your southwestern region? b) What price will you charge in your upper-western region? c) What price will you charge in your New England region?