Fiirms total revenues change


Problem: You are the manager of a firm that receives revenues of $30,000 per year from product X and $70,000 per year from product Y. The price elasticity of demand for product X is -2.5, and the cross-price elasticity of demand between product Y and X is 1.1. How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 1 percent?

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