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goblinko [34]
3 years ago
11

10 percent increase in the price of soda leads to a 20 percent increase in the quantity of iced tea demanded. it appears that: _

________.
Business
1 answer:
VashaNatasha [74]3 years ago
5 0
The answer is:
Cross-price elasticity of demand for ice tea is -2.
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Total cost per week = $3600

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<em><u>Given</u></em>:

Cost for constructing and purchasing the equipment for restaurant = $520,000

Minimum return = 10% of investment

Restaurant is opened = 52 weeks per year

No. of meals = 900 meals/per week

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Expense for weekly wages = $1000

Fixed cost per week = ([520,000(.10)]/52) + 1000 = 2000

Variable cost = 1000 + 600 = 1600

Total cost = Fixed cost per week + Variable cost

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Total cost per week = $3600

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