How much of the sales is bookstore going to lose


A bookstore opens across the street from the University Book Store (UBS). The new store carries the same textbooks but offers a price 30 % lower than UBS. If the cross-elasticity is estimated to be 1.5, and UBS does not respond to its competition, how much of its sales is it going to lose?

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Microeconomics: How much of the sales is bookstore going to lose
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