PEL prides itself on innovative home appliances geared towards the modern consumer.
With the start of winter season PEL has announced 2% discount off the average price of
refrigerators sold during the month of October in an effort to reduce excess end-of-themodel-year inventory. Customer response was wildly enthusiastic, with unit sales rising
by 20% over the previous month's level.
Requirement:
a. Calculate the point price elasticity of demand for PEL refrigerators sold during the
month of August.
b. Calculate the profit-maximizing price per unit if PEL has Rs.30, 600 marginal selling
costs.
Note: This Question/Data is Posted By: Arooj. This is a public post if you consider this is data violation please contact to admin.
