Why do you think that the monthly demand curve

Reference no: EM133287264

Case: Leticia runs a corner delicatessen and decides one Monday morning to raise the prices of her sandwiches by ten percent. Because Leticia knows a little economics, she expects that this price increase will cause her to lose some business because demand curves slope down, but she decides to try it anyway. At the end of the day, Leticia discovers that her revenue has, in fact, gone up in the sandwich department. Feeling pleased with herself, Leticia hires someone to create signs showing the new prices for the sandwich department. At the end of the month, however, she discovers that sandwich revenue is way down.

Question 1: Why do you think that the monthly demand curve might have a different elasticity than the daily demand in the above case?

Question 2: What conclusion can you draw from this economic pattern in the short and in the long run?

Reference no: EM133287264

Questions Cloud

Why was mesa air group able to charge : Why was Mesa Air Group able to charge such low prices and stay in business while Aloha went bankrupt? In which of the four market structures you learned

What progress did you make towards the aim : What progress did you make towards the Aim? Elaborate on your plan and the steps you implemented to achieve the Aim

What does hamiltons statement imply : What does Hamiltons statement imply about the returns to scale in the cloud computing industry? Explain

What is the best response of the nurse : What is the best response of the nurse? After you provide some education, the mother states that she is still interested in formula feeding

Why do you think that the monthly demand curve : Why do you think that the monthly demand curve might have a different elasticity than the daily demand in the above case

What about variable costs : These venues have a maximum capacity, so there is a fixed number of seats that could be produced at a maximum

What are your strengths and weaknesses : Question - When it comes to facilitating spiritual care for patients with worldviews different from your own, what are your strengths and weaknesses

Define homeostasis : Define Homeostasis and provide one example of a normal positive and negative feedback loop? Secondly, can you think of an abnormal negative

What are the fixed costs of producing a concert : What are the fixed costs of producing a concert in a venue? What about variable costs? If the Swift concert is not sold out by performance time, you should

User Account

All Pages