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AMA PCM
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AMA PCM Questions and Answers
Cinfy, an electronic appliances manufacturer, sells 30 pizza ovens, 60 coffee makers, and 90 sandwich toasters per day. Despite warnings from analysts, Cinfy hikes prices of its toasters from $150 to $180, and toaster sales fall by 40%. After this pricing strategy backfires, Cinfy decides that a 10% drop in demand is acceptable, but not more. Assuming that the elasticity of demand for the toasters remains constant, what is the maximum price hike that Cinfy can afford without letting the sales drop by more than 10%?
_____ is/are also known as the Digital Natives, because people in this group were born into a world that already was full of electronic gadgets and digital technologies, such as the Internet and social networks.
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TESTED 27 Nov 2024
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