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You are a manager in charge of monitoring cash flow at a major app publisher. Gaming apps comprise 40 percent of your revenues, which grow

You are a manager in charge of monitoring cash flow at a major app publisher. Gaming apps comprise 40 percent of your revenues, which grow about 4 percent annually. You recently received a preliminary report that suggests the growth rate in puzzle apps has leveled off, and that the cross- price elasticity of demand between gaming apps and puzzle apps is -0.2. In 2020, your company earned about $400 million from sales of puzzle apps and about $200 million from sales of gaming apps. If the own price elasticity of demand for gaming apps is -3, how will a 4 percent decrease in the price of gaming apps affect your overall revenues from both gaming apps and puzzle apps sales?

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