The own price elasticity of demand for product

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You are the manager of a firm that receives revenues of $40,000 per year from product X and $80,000 per year from product Y. The own price elasticity of demand for product X is -1.5, and the cross-price elasticity of demand between product Y and X is -1.8.

How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 1 percent?

Instructions: Round your answer to the nearest dollar. Include a minus (-) sign if applicable.

Reference no: EM13858997

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