Question: VH Company is planning to decrease mini e-reader price from 600 TL to 400 TL. By doing so, the company expect that the current demand

 VH Company is planning to decrease mini e-reader price from 600

VH Company is planning to decrease mini e-reader price from 600 TL to 400 TL. By doing so, the company expect that the current demand of 15000 units per month will be increasing to 25000 units per month. Cost structure for the company as follows Cost of E-Reader Variable Cost/unit 100 TL Mixed Cost (per 1000 units) 5.000 TL Fixed Costs per month 80.000 TL What is the price elasticity of demand? What should be the decision for the company about the price change

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