Calculate the coefficient of price elasticity of combo meal

Assignment Help Microeconomics

Reference no: EM133440650

Assignment:

We are perplexed with the outcome of certain price changes at our restaurants. Prior to the pandemic, we sold our Mexican combo, consisting of one beef or chicken taco, one beef or chicken burrito, and one small cup of refried beans for $5.95. At that time, our average shop was selling 600 Mexican combos each week. Once the pandemic hit, our commodity inputs rose in price as did the cost of our labor. We hesitantly raised the price to $6.95, anticipating a major reduction in the weekly quantity of demand. To our amazement, average sales per store only declined by 15 combos per week. Please calculate the coefficient of price elasticity of the combo meal using the Midpoints Formula.

Reference no: EM133440650

Questions Cloud

How do firms attempt to stimulate demand : How do firms attempt to stimulate demand (shift demand outward)? Defend your answer with a detailed evaluation that demonstrates clear.

Are often a symptom of wider health system-societal ailments : Are often a symptom of wider health system or societal ailments. BMJ?: British Medical Journal, 324(7340), 751-752. For a paper titled Nursing Shortages please?

What is her deduction for the trip : She spent $300 for airfare, $400 for lodging, $200 for restaurant meals, and $150 for tuition. What is her deduction for the trip?

What is implementing the healthier eating program : What is one way you could involve the children in developing and implementing the healthier eating program?

Calculate the coefficient of price elasticity of combo meal : We sold our Mexican combo, consisting of one beef or chicken taco, one beef or chicken burrito, and one small cup of refried beans for $5.95.

Discuss impact that freight movement has on environmental : In your post, discuss the impact that freight movement has on the environmental and financial sustainability of a supply chain.

Discuss supply and demand model : When should we use this Supply and Demand model in deciding the market price, and the change of the market price? Tell us about your daily experience.

How does the provision of public goods : How does the provision of public goods at the local level affect their optimality?

Why are there so many single-issue voters : Why are there so many single-issue voters? What type of single-issue voters are the most valuable to a politician.

User Account

All Pages