A company currently sells 60,000 units a month at $10 per unit. The marginal cost per unit is $6. The company is considering raising the price by 10% to $11. If the price elasticity of demand is _______________ in that price range, then profits would increase if the company decided to raise the price by 10%.© BrainMass Inc. brainmass.com October 10, 2019, 4:09 am ad1c9bdddf
The price elasticity of demand tells us by how much demand will change, as a percentage, for each percentage point change in price. For example, if the PED is ...
The solution discusses increasing profits with a price elasticity of demand in certain range.