Answer:
Sales of computer chips will ▼ decrease by 40% and sales of disk drives will ▼ decrease by 20%.
What will happen to sales revenue? Computer chip sales revenue will ▼ decrease
Step-by-step explanation:
The numbers are missing, so I looked for a similar question:
The ACME Corporation determines that at current prices, the demand for its computer chips has a price elasticity of -2 in the short run, while the price elasticity for its disk drives is -1. If the corporation decides to raise the price of both products by 20 percent, what will happen to its sales?
When a product's PED = -2 (price elastic), a 1% increase in price will result in a 2% decrease in quantity demanded.
When a product's PED = -1 (price unitary elastic), a 1% increase in price will result in a 1% decrease in quantity demanded.