What price should company charge per pair of socks


Company Z had monthly sale of 10,000 pairs of Socks (at Kshs. 100 per pair) before a price cut by its major competitors. After the competitor's price reduction, the sales of company Z declined to 8,000 pairs a month. From past experience, company z has estimated the price elasticity of demand to be about -2.0 in this price-quantity range. If the company wishes to restore its sales to 10,000 pairs a month, what price should it charge per pair of socks?

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Microeconomics: What price should company charge per pair of socks
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