Competitor cut their price also the industry sales declined

Reference no: EM1327136

Calculating new price level

Company had 10,000 shoes sales ($100 a pair) per month, a major competitor cut their price and the company sales declined to 8000 shoes per month, If the company wishes to restore sales to 10,000 per month determine the price they need to charge. Company A estimates that the price elasticity is -2.0 in the price quantity range.

Reference no: EM1327136

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