Question 9

At $85 , a firm can sell 4,850 stereo earphones (3.5 mm for android). At this price, elasticity is estimated at 2.6. What is the change in total revenue (+ or -) if the firm drops price by 9%? Round your answer to the nearest dollar.

Question 10 (10 points)

At $177, a firm can sell 18,520 stereo earphones (3.5 mm for android). These are premium earphones, guaranteed for 5 years. At this price, elasticity is estimated at 0.4. What is the change in total revenue (+ or -) if the firm drops price by 11%?