Consider a firm that produces two goods, X and Y. Suppose th…
Consider a firm that produces two goods, X and Y. Suppose that the price of good X changes by 1%. If the firm earns $4,000 in revenue from good X, $2,000 in revenue from good Y, the price elasticity of demand for good X is -1.5 and the cross price elasticity of demand for good Y with respect the the price of good X is -4, how much will the firm’s revenue change? Enter your answer as a number only. Do not use a dollar sign.
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