Total revenue for the product to increase next year

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A company's management team wants to project the total revenue that it can anticipate from its best selling product next year. Acme currently sells 100,000 of these each year at an average price of $50. Research shows that its price elasticity is 0.80. If it chooses to raise prices 20%, how much can it expect its total revenue for the product to increase next year, all others things equal?

Reference no: EM132401269

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