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Just a year after you launched the expansion of DWJ, inflation has raised your marginal cost by 7% from $198.33 to $212.21. Your elasticity varies

Just a year after you launched the expansion of DWJ, inflation has raised your marginal cost by 7% from $198.33 to $212.21. Your elasticity varies for each of the three regions in which you sell your DWJ brand. In the Southwestern region your price elasticity of demand is -2.76. In your upper western-region your price elasticity of demand is -3.50. In your New England region the price elasticity of demand is -5.76.

Predict the percentage change in quantity demanded if you were to (raise prices) in all three regions by 7%.

Use %Qd/%P = e to complete the estimate

a. %Qd Southwestern

b. %Qd upper western

c. %Qd New England

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