Your firm receives revenue of $40MM per year from Product A and $90MM per year from Product B. The own- price elasticity of demand for Product A is -1.5. The cross-price elasticity of demand between Product A and Product B is -1.8. Suppose you increase the price of Product A by two percent:   a. How much will Product A’s revenue change?   b. How much will Product B’s revenue change?

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Q: 10.

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