angieagfan487 angieagfan487

15-02-2024
Business

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Your firm receives revenue of 40MM per year from Product A and 90MM per year from Product B. The own- price elasticity of demand for Product A is -1.5. The cross-price elasticity of demand between Product A and Product B is -1.8. Suppose you increase the price of Product A by two percent: a. How much will Product A's revenue change? b. How much will Product B's revenue change?

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