microeconomics problem?

Question

can someone please help me with this micro problem?

The president of a toy company asks you for advice about whether the company should cut the price of its best-selling doll this year based on the following information: last year the company cut the price of its best-selling doll by 10% and the total revenues from doll sales increased by 10%.

10 points!:D

thanks.

Answer 1

Favorite Answer

if the increase form last year is more than 10%, then you should consider to do what you did last year..but if it's only 10%..it doesnt make any differece.

Answer 2

Cutting the price at rate of 10 % makes no difference to company.