Machine Learning, Causal Inference, Data Science, Deep Dives, Notes From Industry.
yield a 15% demand reduction (from 100 to 85). Then the new profit would be slightly increased, 85*(5.25–4)=$106. If, however, they decreased their price by 5%, they would lose profits: 115*(4.75–4)=$86. Note that higher prices do not always lead to higher profits: for example, if the unit cost