Question
You are the manager of a firm that receives revenues of $30,000 per year from product X and $100,000 per year from product Y .
You are the manager of a firm that receives revenues of $30,000 per year from productXand $100,000 per year from productY. The own price elasticity of demand for productXis -1, and the cross-price elasticity of demand between productYandXis 1.2.
How much will your firm's total revenues (revenues from both products) change if you increase the price of goodXby 2 percent?
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Microeconomics
Authors: Roger A. Arnold
12th Edition
1285738306, 978-1285738307
