What price should jim set

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Reference no: EM13160587

The burrito barn is considering a price reduction on the firegut burrito, which currently sells for $5.00. Jim, the owner of burrito barn, knows that the price elasticity of the firegut is roughly equal to -2.3 over the range of prices being considered for the change. The firegut has been selling at the brisk pace of 500 burritos per week. To increase his market share in the fast food market, Jim would like to increase sales of the firegut to 750 per week, what price should jim set? ( be specific and show your work).

Reference no: EM13160587

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