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The demand curve for a product sold by Big G is given by Qxd=1200-3Px-0.1Pz where Pz = $300. b. For the first time I two years, Big G raise the price of X by 4%. If, as a result of this price increase, the volume of all X sold by Big G dropped by 5%, what can you infer about the own price elasticity of demand for product X by Big G? Can you predict whether the revenues on sales of its brand increased or decreased? 7:29 pm

The demand curve for a product sold by Big G is given by Qxd=1200-3Px-0.1Pz where Pz = $300. b. For the first time I two years, Big G raise the price of X by 4%. If, as a result of this price increase, the volume of all X sold by Big G dropped by 5%, what can you infer about the own price elasticity of demand for product X by Big G? Can you predict whether the revenues on sales of its brand increased or decreased? 7:29 pm

Microeconomics: Private and Public Choice (MindTap Course List)
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter7: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 13CQ: Suppose Erin, the owner-manager of a local hotel projects the following demand for her rooms: a....
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The demand curve for a product sold by Big G is given by Qxd=1200-3Px-0.1Pz where Pz = $300. b. For the first time I two years, Big G raise the price of X by 4%. If, as a result of this price increase, the volume of all X sold by Big G dropped by 5%, what can you infer about the own price elasticity of demand for product X by Big G? Can you predict whether the revenues on sales of its brand increased or decreased? 7:29 pm
Transcribed Image Text:The demand curve for a product sold by Big G is given by Qxd=1200-3Px-0.1Pz where Pz = $300. b. For the first time I two years, Big G raise the price of X by 4%. If, as a result of this price increase, the volume of all X sold by Big G dropped by 5%, what can you infer about the own price elasticity of demand for product X by Big G? Can you predict whether the revenues on sales of its brand increased or decreased? 7:29 pm
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