Question
You are the manager of a firm that receives revenues of $50,000 per year from product X and $80,000 per year from product Y .
You are the manager of a firm that receives revenues of $50,000 per year from productXand $80,000 per year from productY. The own price elasticity of demand for productXis -3, and the cross-price elasticity of demand between productYandXis 1.8.
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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The Wisdom Of Crowds
Authors: James Surowiecki
1st Edition
0385721706, 9780385721707
