The ABC Company manufactures digital clock radios and sells on average 3,000 units monthly at $25 each
Question:
a. If the demand for ABC's product has an elasticity coefficient of -3, how many will it sell per month if the price is lowered to $22?
b. The competitor decreases its price to $24. If cross-price elasticity between the two radios is 0.3, what will ABC's monthly sales be?
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a x 3000 22 25 3 x 30...View the full answer
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Related Book For 
Managerial Economics
ISBN: 978-0133020267
7th edition
Authors: Paul Keat, Philip K Young, Steve Erfle
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