All dollar responses should be entered as whole numbers. Include a minus (-) sign for all negative
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Question:
All dollar responses should be entered as whole numbers. Include a minus (-) sign for all negative answers.
a. How much would the firm’s revenue change if it lowered price from $12 to $10? Is demand elastic or inelastic in this range?
Revenue change: $
b. How much would the firm’s revenue change if it lowered price from $4 to $2? Is demand elastic or inelastic in this range?
Revenue change: $
c. What price maximizes the firm’s total revenues? What is the elasticity of demand at this point on the demand curve?
Price that maximizes total revenues: $
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324664553
Concise 6th Edition
Authors: Eugene F. Brigham, Joel F. Houston
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