Explain how discount will affect the total revenue in group

Reference no: EM13233267

The online bookseller wants to increase its total revenue by offering 10% discount on every book it sells.Its custmers are divided in 2 groups Group A and group B Volume of sales before the discount for Group A= sales for $1.55 million per week and for the Group B= sales for $ 1.50 million per week After the discount of 10% the volume of sales for the Goup A = $ 1.65 million and for the Group B= $1.70 million per week 1) Using mid-point method, calculate the price elasticity of Demand both for group A and Group B. 2)Explain how the discount will affect the total revenue in each group

Reference no: EM13233267

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