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For the last two questions, imagine that a similar company, called Yuckles Pet Products, operates in Uruguay and sells more expensive products than Pepita Disco
For the last two questions, imagine that a similar company, called Yuckles Pet Products, operates in Uruguay and sells more expensive products than Pepita Disco (for example, they sell pet carriers and baskets). It has exactly the same revenues, total fixed and total variable costs as Pepita Disco. Yuckles' financials look exactly like Pepita Disco's, except that Yuckles sells 40 million units (instead of 100 million). How much will Yuckles's net margin increase or decrease (in $U millions) if the company raises price by 10% with a price elasticity of -1.7? For an increase, use a before the number. For a decrease, use a - before the number
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