Question
You are the manager of a firm that receives revenues of $50,000 per year from product X and $100,000 per year from product Y .
You are the manager of a firm that receives revenues of $50,000 per year from productXand $100,000 per year from productY. The own price elasticity of demand for productXis -2, and the cross-price elasticity of demand between productYandXis 1.4.
How much will your firm's total revenues (revenues from both products) change if you increase the price of goodXby 1 percent?
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Using Excel For Principles Of Econometrics
Authors: R Carter Hill, Genevieve Briand
4th Edition
1118032101, 9781118032107
