Problem 2: Elasticity and Pricing Suppose the number of firms you compete with has recently increased.

Problem 2: Elasticity and Pricing Suppose the number of firms you compete with has recently increased. You estimated that as a result of the increased competition, the demand elasticity has increased from -2 to -3, i.e., you face more elastic demand. You are currently charging $10 for your product. What is the price that you should charge, if demand elasticity is -3?