Explain how much will your companys total revenues

Reference no: EM1327142

The solution to Price Elasticity

You are the manager of a firm that receives revenues of $30,000 per year from product X and $70,000 per year from product Y. The own price elasticity of demand for product X is -2.5, and the cross-price elasticity of demand between product Y and X is 1.1. How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 1 percent?

Reference no: EM1327142

Questions Cloud

What steps and tools are available for you to protect : What steps and tools are available for you to protect your family (especially your children) from these internet dangers?

What are the serious challenges faced : What are the serious challenges faced when creating in-house software applications and what is the best process of training users on new software.

Average variable price are assumed to remain constant : If average variable price are assumed to remain constant over a 10 percent increase in output, evaluate the effects of the proposed price cut on total profits.

Modify a purchased software package : If the project team find out that the best alternative is to modify a purchased software package, then the team has several options to consider. What are they? What mus the project team take responsibility for in each case?

Explain how much will your companys total revenues : Explain how much will your company's total revenues revenues from both products change if you increase the price of good X by 1 percent.

Compare and contrast the useradd : Compare and contrast the useradd and adduser commands in Linux. What is their purpose? Which one would you use? What other processes besides using these two commands might you employ to accomplish the same task?

How the "right" database design can rarely be decided : The "right" database design can rarely be decided on the basis of normalization principle alone. Do you agree or disagree? explain.

Elasticity of us exports with respect to the real exchange : If the elasticity of US exports with respect to the real exchange rate is very low, will this increase in private saving have a large or small effect on the U.S. real exchange rate

What is the state of it systems development : What is the current state of IT systems development? How do systems development approaches affect business?

User Account

All Pages