Question

20,00
(a) Enumerate the
Sharma Brothers is a multi-product firm engaged in the production of
consumption goods. Two of its products X and Y, are related in
consumption. The past experience of the firm indicates the following
relationships :
Price of X
Income
Price of YQp of X Consumer's
(per capita) poser
150
200 5000
10000
175
225 5500
10500
175
250 6000
10500
200
250 5500
10500
200
250 6500
12500
(a) Could the price elasticity of demand for X between price * 150
and * 175 we computed? Why or why not?
(b) What is the relationship between X and Y?
(C) If Sharma Brothers' win at maximum sales revenue from
product X, would you recommend to raise the price of X from
* 175 to 200? Why or why not?​

Answer 1

Answer:

The past experience of the firm indicates the following

relationships :

Price of X

Income

Price of YQp of X Consumer's

(per capita) poser

150

200 5000

10000

175

225 5500

10500

175

250 6000

10500

200 okk