COST PLUS PRICING. (This question plus the next 2 questions) You have demand for 2 products: QA = 150 - 1.5*PA And QB = 200 - 2*PB You anticipate selling 60 units of each product. You have to mark-up your two products to cover an unexpected increase in overhead costs. Based on the cost-plus pricing procedure we did in class, answer this question plus the next question. Which comes closest to the price elasticity for Product B?
1) -1.50
2) -1.80
3) -2.00
4) -2.30