Assume the demand for suits at a mens clothing store is linear with a price elasticity of
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Assume the demand for suits at a men’s clothing store is linear with a price elasticity of 5. At the current price of $500, 60 suits per week are sold. The cost per suit is $200. Assume that with each suit, a man buys two ties and one shirt. The profit per tie is $15, and the profit per shirt is $25. What price should the store set for a suit?
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To determine the price the store should set for a suit we need to find the price point that maximize...View the full answer
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Deepak Sharma
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Microsoft Excel Data Analysis And Business Modeling
ISBN: 9780137613663
7th Edition
Authors: Wayne Winston
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