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Raul runs a fruit stand in Philadelphia. The following contains data on prices and weekly sales at his stand Good Apples Pears Price 2.50/lbs $1.60/lbs
Raul runs a fruit stand in Philadelphia. The following contains data on prices and weekly sales at his stand Good Apples Pears Price 2.50/lbs $1.60/lbs Quantity 800 lbs 200 lbs ShS He estimates that the own price elasticity for apples is 2 and the pears is 1.5. He also estimates that the cross price elasticity for pears is .50. His current revenue from the sale of these two goods is making a total of $2,320/week. Since the price elasticity for the demand for apples more elastic, he has decided to lower the price of apples from $2.50 to $2.25. Overall, Raul can expect to take in ____ dollars in revenue, given the information in this problem? (Revenue = Price x sales). Record your answer without a dollar sign and without a comma. Helpful Hint: In this problem, we are not changing the price of pears
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