Discuss how much will your firms total revenues change


Suppose you are the manager of a firm that receives revenues of $40,000 per year from product X and $70,000 per year from product Y. The cross-price elasticity of demand between product Y and X is 1.6 and the own price elasticity of demand for product X is -1.5.
Discuss how much will your firm's total revenues change if you increase the price of good X by one percent?

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Macroeconomics: Discuss how much will your firms total revenues change
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