If a perfume store currently sells perfume for $30 a bottle and averages $2000 sales per month, what sales might they anticipate if they raise the price to $40 a bottle?

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02-08-2022
Business

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If a perfume store currently sells perfume for $30 a bottle and averages $2000 sales per month, what sales might they anticipate if they raise the price to $40 a bottle?

Sagot :

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ahmadfardeen571 ahmadfardeen571 · Answer 1 · 2022-08-09T13:50:14-04:00

Previously, the perfume cost was $30 per bottle if they raise to $40 and sales of $2000 at $30. when the prices increase the demand decrease, so let the elasticity of demand is 1, which means its unitary elastic. So sales decrease proportionally means it will decrease to 1500.

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If a perfume store currently sells perfume for $30 a bottle and averages $2000 sales per month, what sales might they anticipate if they raise the price to $40 a bottle?

Sagot :

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