ABC company manufactures digital clock radios and sells on ave 3000 units monthly at $25 each to retail stores. Its closest competitor produces a similar type of radio that sells for $28.
a. If the demand for ABCs clock radio has an elasticity of -3, how many will it sell per month if the price is lowered to $22?
B. The competitor decreases its price to $24. If cross-price elasticity between the two radios is 0.3, what will abcs monthly sales be?