You are the manager of a firm that receive revenue of Rs.30,000 per year from product X and Rs. 70,000 per year from product Y. The own price elasticity of demand for product X is -2.5 and the cross price elasticity of demand between product Y and X is 1.1. How much will you firm’s total revenue (revenues from both products) change if you increase the price of good X by 1 present?

/in /by

You are the manager of a firm that receive revenue of Rs.30,000 per
year from product X

and Rs. 70,000 per year from product Y. The own price elasticity of
demand for product X

is -2.5 and the cross price elasticity of demand between product Y and
X is 1.1. How much

will you firm’s total revenue (revenues from both products) change
if you increase the price

of good X by 1 present?

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