1. Determine the required ADR. 2. Assume the Bruno has both single and double rooms. Further assume that 80 percent of rooms sold are doubles and that doubles sell for $20 more than the price of a single. What is the average selling price of a double? bi Problem 9 The Squish, an upscale 150-seat restaurant, revises its menu every six months. The revisions are based, in part, on the price elasticity of demand for their menu items. During the thirty- day periods before and after the last menu revision, the selling prices and quantity sold of temvo srli three items were as follows: Item hote w Prior to Revision After Revision Price e Quantity Price Quantity Super Burger Golden Chicken $4.95 $6.45 $6.45 450 400 $5.45 $5.95 800 1,000 Ocean Delight 600 $6.95 400 The above sales quantities have remained fairly constant each month since the last menu revision. insois Oolos xel soooml C Required: R the 1. Compute the price elasticity of demand for each menu item. 08 nSTL 2. Advise Kay Rae, the manager, of the implications of your results for each menu item. Ovsaiblina Problem 10

1. Determine the required ADR. 2. Assume the Bruno has both single and double rooms. Further assume that 80 percent of rooms sold are doubles and that doubles sell for $20 more than the price of a single. What is the average selling price of a double? bi Problem 9 The Squish, an upscale 150-seat restaurant, revises its menu every six months. The revisions are based, in part, on the price elasticity of demand for their menu items. During the thirty- day periods before and after the last menu revision, the selling prices and quantity sold of temvo srli three items were as follows: Item hote w Prior to Revision After Revision Price e Quantity Price Quantity Super Burger Golden Chicken $4.95 $6.45 $6.45 450 400 $5.45 $5.95 800 1,000 Ocean Delight 600 $6.95 400 The above sales quantities have remained fairly constant each month since the last menu revision. insois Oolos xel soooml C Required: R the 1. Compute the price elasticity of demand for each menu item. 08 nSTL 2. Advise Kay Rae, the manager, of the implications of your results for each menu item. Ovsaiblina Problem 10

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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