Just a year after you launched the expansion of DWJ, inflation has raised your marginal cost...

  

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Just a year after you launched the expansion of DWJ, inflation has raised your marginal cost by 7% from $198.33 to $212.21. Your elasticity varies for each of the three regions in which you sell your DWJ brand. In the southwestern region, your elasticity is -2.76. In your upper-western region, your elasticity is -3.50. In your New England region, the elasticity is -5.76. Use %AQd/%AP = e to estimate the percentage change (decrease) in quantity demanded if you were to raise prices in all three regions by 7%. a. %AQd Southwestern 19.3% b. %AQd Upper-western 24.5% c.%AQd New England 40.3% Your current prices are $311 in the southwestern region; $278 in the western region and $240 in the New England region. Your marginal cost is now $212.21. Given the predicted changes in the quantity demanded by region per problem 1 and using the stay even analysis %AQd = %AP/ [%AP + ((P-MC)/P)], can you raise the price by 7% in any of the regional markets? State you conclusion and then show all the steps supporting your conclusion. Just a year after you launched the expansion of DWJ, inflation has raised your marginal cost by 7% from $198.33 to $212.21. Your elasticity varies for each of the three regions in which you sell your DWJ brand. In the southwestern region, your elasticity is -2.76. In your upper-western region, your elasticity is -3.50. In your New England region, the elasticity is -5.76. Use %AQd/%AP = e to estimate the percentage change (decrease) in quantity demanded if you were to raise prices in all three regions by 7%. a. %AQd Southwestern 19.3% b. %AQd Upper-western 24.5% c.%AQd New England 40.3% Your current prices are $311 in the southwestern region; $278 in the western region and $240 in the New England region. Your marginal cost is now $212.21. Given the predicted changes in the quantity demanded by region per problem 1 and using the stay even analysis %AQd = %AP/ [%AP + ((P-MC)/P)], can you raise the price by 7% in any of the regional markets? State you conclusion and then show all the steps supporting your conclusion.

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Answer The inflation has raised the marginal cost DWJ brand by 7 from 19833 to 21221 The elasticity ... View the full answer