Suppose that a manufacturer sells a product through an upscale boutique and, with a different brand name,
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Question:
Suppose that a manufacturer sells a product through an upscale boutique and, with a different brand name, through a discount retailer. The elasticity of demand at the boutique is -1.2 and at the discount retailer is -2.6. If the optimal price at the boutique is $85, what price ( PD ) should be charged at the discount retailer?
Related Book For
Managerial Economics and Business Strategy
ISBN: 978-0073523224
8th edition
Authors: Michael Baye, Jeff Prince
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