4 Assume that the elasticity of demand for Avivas jeans is 2. Assume that production costs are...
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4 Assume that the elasticity of demand for Aviva’s jeans is 2. Assume that production costs are constant and that there is a 10 percent dollar depreciation.
a By how much will the quantity sold increase?
b By how much will dollar revenues increase?
c By how much will foreign exchange revenues increase?
d By how much will costs increase?
e By how much will profits increase?
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