You operate a museum. Your price elasticity of demand for in-state visitors is 4, and you maximize
Fantastic news! We've Found the answer you've been seeking!
Question:
You operate a museum. Your price elasticity of demand for in-state visitors is –4, and you maximize profits by charging them $ per 4/visit. If the price elasticity of demand for out-of-state visitors is –2, to maximize profits you should charge them
A. $4.
B. $8.
C. $2.
D. $6.
I know the answer is $6 but can someone explain to me step by step the formula used.
Related Book For
Managerial Accounting Creating Value in a Dynamic Business Environment
ISBN: 978-0078025662
10th edition
Authors: Ronald Hilton, David Platt
Posted Date: