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Answer to Question #142343 in Finance for Mr. Dinesh Pal Singh
Question #142343
34. Sailright Inc. manufactures and sells sailboards. Management believes that the price elasticity of demand is – 3.0. Currently, boards are priced at $500 and the quantity demanded is 10,000 per year.
(a) If the price is increased to $600, how many sailboards will the company be able to sell each year?
(b) How much will total revenue change as a result of the price increase?
(a) If the price is increased to $600, how many sailboards will the company be able to sell each year?
(b) How much will total revenue change as a result of the price increase?
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