Question #2013199: Elasticity Theory

Question: Dirt Cheap Records, Inc., estimates its price elasticity of demand to be -4. Currently, DCRI sells 1,000 records per week at a price of $5.00 each. If DCRI lowers its price to $4.00:

(a) What will happen to total revenue? How do you know?

(b) What will be the new quantity sold?

Solution: The solution consists of 112 words (1 page)
Deliverables: Word Document

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