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suppose the firm wishes to increase its sales of Good B by 12%. Calculate by how much (in %) the firm should change the price
suppose the firm wishes to increase its sales of Good B by 12%. Calculate by how much (in %) the firm should change the price of Good B to achieve this objective?
Profit maximizing price of Good A = $6000
MC at profit maximizing level of output of Good A = $1200
MC at profit maximizing level of output of Good B = $400
Total revenue of Good A = $80000
Total revenue of Good B = $68000
Rothschild index of Good B = 0.6
Price elasticity of the market demand for Good B = -1.2
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