The ABC Company manufactures digital clock radios and sells on The ABC Company manufactures digital.

The ABC Company manufactures digital clock radios and sells on
The ABC Company manufactures digital clock radios and sells on average 3,000 units monthly at $25 each to retail stores. Its closest competitor produces a similar type of radio that sells for $28.

a. If the demand for ABC’s product has an elasticity coefficient of -3, how many will it sell per month if the price is lowered to $22?

b. The competitor decreases its price to $24. If cross-price elasticity between the two radios is 0.3, what will ABC’s monthly sales be?

The ABC Company manufactures digital clock radios and sells on

"Is this question part of your assignment? We can help"

ORDER NOW