Question
Assume you are selling computers.You currently sell 850 computers at a price of $2500.You have done some market research and believe that the price elasticity
Assume you are selling computers.You currently sell 850 computers at a price of $2500.You have done some market research and believe that the price elasticity of demand is 2.13.Your marginal cost of production is $1400 per computer.You are trying to decide if you should change your price or not.What will happen to your total revenue if you increase your price?What will happen to your profitability?What should you do?Why?
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Macroeconomics
Authors: David Colander
8th edition
978-0078004407, 78004403, 978-0077247171, 77247175, 978-0077307110
