Decision to raise the price in restaurants


As the owner of a lunch diner,you know that you sell on average 180 lunches daily, for an average price of $8.95. You are considering raising prices so that the average lunch will run $10.95. You know from previous industry analyses that when the average price is $10.95, restaurants sell on average 144 lunches. Assuming that you respond like the industry, should you raise your price? Why or Why not?

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: Decision to raise the price in restaurants
Reference No:- TGS058126

Expected delivery within 24 Hours