Your firm's research department has estimated the elasticity of demand for toys to be -0.7. As the manager of the firm, determine the impact of an 8 percent increase in toy prices on your total revenues.© BrainMass Inc. brainmass.com October 10, 2019, 7:43 am ad1c9bdddf
We can find the percentage change in quantity demanded by using the following formula:
Price Elasticity of Demand = % Change in ...
This solution looks at the elasticity of demand and its impact on total revenue by providing a step-by-step solution for a sample problem.