find the price elasticity of demand for this restaurant’s beef burger; and b) find the cross-elasticity of demand for chicken meat with respect to the price of
find the price elasticity of demand for this restaurant’s beef burger; and b) find the cross-elasticity of demand for chicken meat with respect to the price of
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter7: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 13CQ: Suppose Erin, the owner-manager of a local hotel projects the following demand for her rooms: a....
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Question
In one month, a beef burger restaurant sold 2,500 personal beef burger at $2.50 per pizza.
When this restaurant increased its price by 20%, its total revenue for the next month
increased to $12,500. As a result of this price increase, however, the monthly sales of
chicken meat decreased from 2,500 slices to 2,000 slices . Using the arc elasticity method,
- a) find the price
elasticity of demand for this restaurant’s beef burger; and - b) find the cross-elasticity of demand for chicken meat with respect to the price of
burger. Comment on your result.
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