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What answer belongs to this question You are the manager of a firm that receives revenues of 30000 per year from product X and 70000 per year from product Y?
Wiki User
∙ 12y ago
Using the change in revenue formula for two products,
ΔR = [$30,000(1− 2.5) + $70,000(1.1)] (.01) = $320.
Thus, a 1 percent increase in the price of good X would cause revenues from both goods to increase by $320.
Wiki User
∙ 12y ago
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