FoisPas, a French restaurant in Westwood, has decided to increase the price of its Sunday brunch from $30 to $34. Following this price increase, the number of reservations on a typical Sunday dropped from 60 to 55. Which statement is correct? O FoisPas was initially maximizing revenues, as demand was unit-elastic at the initial price O The total costs faced of FoisPas on a typical Sunday must have increased for sure O The price increase led to a decrease in total revenues as demand was elastic at the initial price O FoisPas faces a horizontal demand curve O The price increase had a positive impact on total revenue as demand was inelastic at the initial price
FoisPas, a French restaurant in Westwood, has decided to increase the price of its Sunday brunch from $30 to $34. Following this price increase, the number of reservations on a typical Sunday dropped from 60 to 55. Which statement is correct? O FoisPas was initially maximizing revenues, as demand was unit-elastic at the initial price O The total costs faced of FoisPas on a typical Sunday must have increased for sure O The price increase led to a decrease in total revenues as demand was elastic at the initial price O FoisPas faces a horizontal demand curve O The price increase had a positive impact on total revenue as demand was inelastic at the initial price
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter3: Demand Analysis
Section: Chapter Questions
Problem 9E
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![FoisPas, a French restaurant in Westwood, has decided to increase the price of its Sunday brunch from $30 to $34. Following this price increase, the number of
reservations on a typical Sunday dropped from 60 to 55. Which statement is correct?
O FoisPas was initially maximizing revenues, as demand was unit-elastic at the initial price
O The total costs faced of FoisPas on a typical Sunday must have increased for sure
O The price increase led to a decrease in total revenues as demand was elastic at the initial price
O FoisPas faces a horizontal demand curve
O The price increase had a positive impact on total revenue as demand was inelastic at the initial price](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcda088c9-9977-4070-bc21-e361e792a50f%2Fe994a9e4-6c3c-474e-a70e-5622d11cc0a0%2Fhh1gchp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:FoisPas, a French restaurant in Westwood, has decided to increase the price of its Sunday brunch from $30 to $34. Following this price increase, the number of
reservations on a typical Sunday dropped from 60 to 55. Which statement is correct?
O FoisPas was initially maximizing revenues, as demand was unit-elastic at the initial price
O The total costs faced of FoisPas on a typical Sunday must have increased for sure
O The price increase led to a decrease in total revenues as demand was elastic at the initial price
O FoisPas faces a horizontal demand curve
O The price increase had a positive impact on total revenue as demand was inelastic at the initial price
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