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Economics

You are the Manager of a firm that receives revenue of RM 30,000 per year from product X and RM 70,000 per year from product Y. The own price elasticity of demand for product X is -2.5, and the cross price elasticity for product Y and X is 1.1.

Explain how much will your firm's total revenues (revenue from both products) change if you increase the price of good X by 1 percent? Present your answers in details.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9278700

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