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Evaluate point elasticity and optimal pricerichardsons

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Reference no: EM13370321

Evaluate point elasticity and optimal price

Richardson's Stores, Inc. cut prices on Men's Runnng shoes by 2 % during the first quarter and enjoyed a 4-percent increase in unit sales over the period as compared to a year earlier

a. Evaluate the point price elasticity of demand for Richardson's Stores, Inc

b. Evaluate the company's optimal shoe price if marginal cost is $10 per unit

 

Reference no: EM13370321

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