Question: Hello Team, Please solve this Market Analytics Question As per below outlined a printer firm's prices for inkjet printers and cartridges Printer : Price :

Hello Team, Please solve this Market Analytics Question

As per below outlined a printer firm's prices for inkjet printers and cartridges

Printer :

Price : $400 , Variable Cost : $300, Unit Sales : 100,000, Price Elasticity : -2.5

Cartrifges :

Price : $25 , Variable Cost : $10 , Unit Sales : 10 per printer , Price Elasticity : -1.0

The firm is considering three pricing options:

a) Increase printer price by 10 percent

b) Increase cartridge price by 10 percent

c) Reduce printer price by 5 percent and increase cartridge price by 10 percent

What advice would you offer the printer firm?

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