Estimate of the own-price elasticity of demand

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A cafe manager sells steak sandwiches for $9.24 each. The manager notices that a nearby corner store is charging $8.50 per steak sandwich, and is contemplating whether to match the price. Would the cafe lose revenue on steak sandwich sales if it charged $8.50? Justify your conclusion based upon your estimate of the own-price elasticity of demand. Interpret the value and meaning of this elasticity (use the mid-point method to calculate the own-price elasticity of demand).

Reference no: EM131097787

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Estimate of the own-price elasticity of demand : A cafe manager sells steak sandwiches for $9.24 each. The manager notices that a nearby corner store is charging $8.50 per steak sandwich, and is contemplating whether to match the price. Would the cafe lose revenue on steak sandwich sales if it char..

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