Question
Let's say that volume is not constant from PROBLEM 2 but is relatively inelastic One option is to price it at $20 for a demand
Let's say that volume is not constant from PROBLEM 2 but is relatively inelastic
One option is to price it at $20 for a demand of 5000 units per year. The other
option is to price is at $16 for volume of 5500 units. What is the price elasticity?
How much profit over 2 years would you make under each of the 2 pricing
options in using the costs in Problem 2? Which pricing option would you go
with? Show total profitability.
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163
