What is the revised demand forecast for the shoes

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Nike Store at Lee Plaza in Dumaguete City wants to know the optimal price of one of their Clarkson shoe model, taking into account the purchases of socks and insoles. The current price of the Clarkson shoes is P4,499.50 per pair, the related annual sales of which is 24 pairs. The cost of the shoes is estimated at P3,450.00. The elasticity of demand for the shoes is estimated at -2.9 and assumed to be constant within a relevant price range. Every purchase of a pair of the Clarkson model leads to an average of 2 pairs of socks and 1 pair of insole being sold. The socks and insoles contribute P95, and P70, respectively. What is the revised demand forecast for the shoes? (Note: Ignore the currency symbol and comma.)

Reference no: EM133077319

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