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Licemer1 [7]
3 years ago
11

You are the manager of a restaurant and would like to increase revenue. The host staff suggests that you should increase the pri

ce of drinks and food, but the servers suggest decreasing the price of drinks and food. You are unsure if you should increase or decrease price, but you know that
a. the servers thinks demand for drinks and food is elastic.b. the servers think demand for drinks and food is inelastic.c. the host staff thinks demand for drinks and food is elastic.
Social Studies
1 answer:
igomit [66]3 years ago
3 0

Answer: a. the servers thinks demand for drinks and food is elastic.

Explanation:

Elastic demand is an economic concept that refers to the effect price has over the amount of a product consumers are willing to buy.

The law of demand affirms that the amount of purchases has an inverse relationship with the price, meaning that if prices rise, people won´t buy as much. The elasticity of demand allows us to estimate how much the purchases will decrease if the price increases, and vice-versa.

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