Question
You are the manager of a firm that receives revenues of $60,000 per year from product X and $80,000 per year from product Y .
You are the manager of a firm that receives revenues of $60,000 per year from productXand $80,000 per year from productY. The own price elasticity of demand for productXis 1.5, 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 2 percent?
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Payroll Accounting
Authors: Bernard J. Bieg, Judith Toland
21st Edition
1111531056, 978-1111531058
