SQ sells ties and currently has sales of 1,200 units a month, producing a revenue of £36,000. It competes with TR, who is now considering a price cut of 25%. The PED for SQ is –1.5 and the CED between the two products is 0.8.

a) Calculate the effect of TR’s price cut on the sales volume and revenue of SQ

How am I supposed to calculate the Cross Elasticity if I don't have the price of TR?

Similar Questions

1. JQ sells ties and currently has sales of 1,200 units a month, producing a revenue of £36,000. It competes with KR, who is
1. 0 answers
1 JQ sells ties and currently has sales of 1,200 units a month, producing a revenue of £36,000. It competes with KR, who is now
1. 1 answer
Ben used to sell imported silk ties for $20 each in his store. His sales averaged 30 ties a week. He pays $12 to buy the ties he
1. 1 answer
Find the sales necessary to break even(R = C) when the cost C of producing x units is C = 2.24x + 6100 and the revenue R from
1. 2 answers