A fried chicken franchise finds that the demand equation for its new roast chicken product, "Roasted Rooster," is given by 36 D0.85 q = where p is the price (in dollars) per quarter-chicken serving and q is the number of quarter-chicken servings that can be sold per hour at this price. Find E(p) E(p) = Find the price elasticity of demand when the price is set at $4.50 per serving. At a price of $4.50, a 1% increase in price leads to a X % decrease in demand. Interpret the result. At a price of $4.50, the demand is inelastic They should raise the price per serving in order to increase revenue.

A fried chicken franchise finds that the demand equation for its new roast chicken product, "Roasted Rooster," is given by 36 D0.85 q = where p is the price (in dollars) per quarter-chicken serving and q is the number of quarter-chicken servings that can be sold per hour at this price. Find E(p) E(p) = Find the price elasticity of demand when the price is set at $4.50 per serving. At a price of $4.50, a 1% increase in price leads to a X % decrease in demand. Interpret the result. At a price of $4.50, the demand is inelastic They should raise the price per serving in order to increase revenue.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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