Question
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 elasticity is -2.76. In your upper-western region, the elasticity is -3.50. In your New England region, the elasticity is -5.76. Use %Qd/%P = e to estimate the percentage decrease in quantity demanded if you were to raise prices in all three regions by 7%. (Do not include the negative sign when recording your answer. Round to one decimal place, i.e., 10.075, is 10.1)
- %Qd Southwestern
- %Qd Upper-western
- %Qd New England
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