Shalimar Foods sells Vegetarian Corn Samosa plates for INR 30 each, and serves an average of 625 customers per week. During a recent promotion on the eve of India’s Independence Day , Shalimarcut its price to INR 25 each and observed an increase in sales to 750 plates per week.a. Calculate Shalimar’s price elasticity of Demand b. Shalimar is considering permanently lowering its price to INR 28 to increase revenue. Explainc. How many plates should Shalimar expect to sell at the new price?d. Does the move make sense in the light of Shalimar’s intent to increase revenue?
Shalimar Foods sells Vegetarian Corn Samosa plates for INR 30 each, and serves an average of 625 customers per week. During a recent promotion on the eve of India’s Independence Day , Shalimarcut its price to INR 25 each and observed an increase in sales to 750 plates per week.a. Calculate Shalimar’s price elasticity of Demand b. Shalimar is considering permanently lowering its price to INR 28 to increase revenue. Explainc. How many plates should Shalimar expect to sell at the new price?d. Does the move make sense in the light of Shalimar’s intent to increase revenue?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Shalimar Foods sells Vegetarian Corn Samosa plates for INR 30 each, and serves an average of 625
customers per week. During a recent promotion on the eve of India’s Independence Day
, Shalimarcut its
Calculate Shalimar’s price elasticity of Demand
b.
Shalimar is considering permanently lowering its price to INR 28 to increase revenue. Explainc.
How many plates should Shalimar expect to sell at the new price?d.
Does the move make sense in the light of Shalimar’s intent to increase revenue?
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