b. A jewellery firm reduces the price of its platinum earrings from $400 to $350 per unit, resulting in the quantity demanded rising from 25 units to 30 units per month. i. Calculate the value of price elasticity of demand (PED) for the earings. ii. Comment on the result of your answer to i. c. A firm sells 200 units of a product each day at a price of $4. The PED is known to be -2.0. i. Calculate the Total Revenue (TR) of the firm. ii. Calculate the new sales revenue if the firm increases its price by 20% iii. Explain if the decision to raise the price was a good decision for the firm.
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