Answer to Question #58767 in Microeconomics for shalini
and after the price cut becomes:
(1-5%)P * (1+8.5%)Q = 0.95P*1.085Q = 1.03075PQ
By cutting the price by 5% the company increases the total revenue by 3.075%
Answer: it is feasible that the company cuts the price by 5%
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