1) How do alcoholic beverage sales increase profits?

1 answer:

eduard2 years ago

8 0

Alcoholic beverage sales increase profits because they are often still sold regardless of price. Industry trends lead to restaurants offering more of the trendy alcoholic beverages.

<h3 /><h3>How does alcohol affect profit?</h3>

Alcoholic beverages are considered to have an inelastic price elasticity of demand which means that they are sold regardless of their price.

This allows restaurants to charge a higher price for their alcoholic drinks, knowing full well that they will still sell them and make more profits.

Industry trends lead to restaurants offering more of the trendy drinks in order to entice people to buy more drinks.

Find out more on inelastic demand at brainly.com/question/28001343.

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