Cross-price elasticity of demand


You're the manager of a firm which receives revenues of $30,000 per year from product X and $90,000 per year from product Y. The own price elasticity of demand for product X is -2.5, and cross-price elasticity of demand between product Y and X is -1.2.

How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 2 percent?

Round your answer to the nearest dollar. Include a minus (-) sign if applicable.

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Basic Statistics: Cross-price elasticity of demand
Reference No:- TGS0870007

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