Explain how elasticities must be used in pricing decisions

Reference no: EM13687265

Dakota Publishers prints coffee table photo books of the Great Plains and mountain states. The marketing manager generally prices books at $35 each and sales average 4,000 copies per month. Last month, she had a sale and priced volumes at $22.50 each, selling 8500 copies. Compute the price elasticity for these books. Explain how elasticities must be used in pricing decisions. If you were responsible for setting the price of these volumes, what would you choose and why?

Reference no: EM13687265

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