Coffee Mug Pricing Manny's Merchandising Can Custom Print Logos onto Coffee Mugs.It Sells

question 69

Essay

Coffee Mug Pricing
Manny's Merchandising can custom print logos onto coffee mugs.It sells it most popular style for $10 and has a marginal cost,including a blank mug and the printing,of $6.Manny recently ran a diff-in-diff experiment and determined your demand elasticity is -5.Should Manny raise or lower price?

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Definitions:

360-Day Year

A simplified accounting approach that assumes a year has 360 days, used to make interest calculations easier.

Interest Revenue

Income earned from the lending of funds or investment in interest-bearing assets, like loans, bonds, or savings accounts.

360-Day Year

An accounting convention that simplifies interest calculations by assuming there are 360 days in a year.

Note Payable

A financial obligation or loan evidenced by a written promissory note specifying payment terms.