Calculating new price level
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Company had 10,000 shoes sales ($100 a pair) per month, a major competitor cut their price and the company sales declined to 8000 shoes per month, If the company wishes to restore sales to 10,000 per month determine the price they need to charge. Company A estimates that the price elasticity is -2.0 in the price quantity range.
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Solution Summary
Solution describes the steps to calculate the new price that can restore sales level to desired level.
Education
- BEng (Hons) , Birla Institute of Technology and Science, India
- MSc (Hons) , Birla Institute of Technology and Science, India
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