Please help me with managerial economics question

Posted on 2013-11-22 10:12:00 in Economics by HEYSUPERMAN

i have a fool teacher that NEVER explains how to do work problems. :( so can someone please help me with step by step explanations or something?



Sailright Inc. manufactures and sells sailboards. management believes that the price elasticity of demand is -3.0. Currently, boards are priced at $500 and the quantity demanded is 10,000 per year.



a. If the price is increased to $600, how many sailboards will the company be able to sell each year?



b. How much will total revenue change as a result of the price increase.

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