- You sell car insurance to low-income consumers. You have the cheapest rates in Texas—just $30 per month—and you have 100,000 identical customers. You estimate that the price elasticity of demand for your insurance is - 0.1.
________ a. If you raise your prices by 10% or $3 what percent of your customers will you lose?
________ b. How many customers will you lose?
________ c. Your total monthly revenue will change by what percent? (Include + or – sign.)
________ d. Your total monthly revenue will change by what $ amount? (Include + or – sign.)