Initial sales were around 800 (in thousands) and the own price elasticity in this market is -0.75 at an initial price of $350. (Assume that your price elasticity is equal to -0.75 for any price that you calculate below.) However, to enter the market with a splash and sell more phone accessories and apps, Xiaomi has determined that its target sales are 1,010 phones (in thousands).

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To determine the new price that Xiaomi should set to achieve the target sales of 1010 phone... View the full answer