Jenkins Photo Company manufactures an automatic camera that currently sells for $90. Sales volume is about 2,000 cameras per month. A close competitor, the BJ Photo Company, has cut the price of a similar camera it makes from $100 to $80. Jenkins’ economist has estimated the cross elasticity of demand between the two firms’ products at about 0.4, given current income and price levels.

What impact, if an, will the action by BJ have on the total revenue generated by Jenkins, if Jenkins leaves its current price unchanged.

Price: $8.95

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