3. Mr. Willy is determined to raise his revenue of selling blankets in the market. He is contemplating whether to raise the price of his product or not. He noticed that as he lowered the price from P300 to P200, his sales rose from 300 pieces to 550 pieces of blankets per day. If you are the consultant of Mr. Willy, what would you advise him to raise his revenue and profit? Explain your answer briefly and concisely. (Note: computation is required to justify your answer for this question) Hint: Use the concept of elasticity to answer this question.

3. Mr. Willy is determined to raise his revenue of selling blankets in the market. He is contemplating whether to raise the price of his product or not. He noticed that as he lowered the price from P300 to P200, his sales rose from 300 pieces to 550 pieces of blankets per day. If you are the consultant of Mr. Willy, what would you advise him to raise his revenue and profit? Explain your answer briefly and concisely. (Note: computation is required to justify your answer for this question) Hint: Use the concept of elasticity to answer this question.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 16CTQ: Would you rather have efficiency or variety? That is, one opportunity cost of the variety of...

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