In the last quarter, Terra Inc. sold 1914 units of hard drives. Each of the hard drives were priced at $62, on average. The CMO is considering a price change to $ 55 each and has asked the marketing analysts to compute the change in sales revenue. Traditionally, the products of Terra Inc. have exhibited an elasticity of 0.33. Compute the $ change in profitability of Terra Inc

Answer rating: 100% (QA)

The price elasticity of demand is a measure of the responsiveness of the quantity demanded to a chan... View the full answer