Question

In this question, assume that all variables other than price and quantity are held constant. At Betty's Burgers, the hamburgers have a price elasticity of demand-: 305 and Betty has increased sales by 85.00%.
Betty must have changed her price by

Due to the price change, Betty's total revenue will

Patty's Putts increased the price of a round of miniature golf by 76,0%, Patty has calculated her price elasticity of demand at 0.57. She can expect the number of golfers to

Patty can expect the number of golfers to change by

Patty can expect her total revenue to

Answer 1

Answer:

Answer for the question:

In this question, assume that all variables other than price and quantity are held constant. At Betty's Burgers, the hamburgers have a price elasticity of demand-: 305 and Betty has increased sales by 85.00%.

Betty must have changed her price by

Due to the price change, Betty's total revenue will

Patty's Putts increased the price of a round of miniature golf by 76,0%, Patty has calculated her price elasticity of demand at 0.57. She can expect the number of golfers to

Patty can expect the number of golfers to change by

Patty can expect her total revenue to

is given in the attachment.

Explanation:

Answer 2

Answer:

first case

a) It decrease their price by 27.87%

b) Her revenues increased by 33.44%

second case

a) the demand decrease by 43.32‬%

b) revenues decreases by -0.2432%

Explanation:

$E_p= change in demand / change in price$

-3.05 = 0.85 / change in price

change in price = 0.85 / 3.05 = 0,278688 = 27.87%

Revenues change:

Revenue = Q x P

Q = (1 + 85%)

P = (1 - 27.87%)

1.85 x 0,7213‬ = 1,334405‬

Before revenues where 1 (100%)

Revenues increased by 1.334405 - 1   = 0.334405 = 33.44%

Second case:

variation in demand

0.57 = Change in demand / 0.76

0.57 x 0.76 = Change in demand = 0,4332‬

change in revenue

Q = (1 - 0.4332)

P = (1 + 0.76)

revenue (1 - 0.4332)(1 + 0.76) = 0,5668‬ x 1.76 = 0,997568‬

0.997568 - 1 = -0,002432‬ = -0.2432%