uppose you own two Domino's Pizza franchises in your town. After reading the latest issue of Pizza Monthly, you have concluded that both of your locations are generating below average revenue. You hire as cal economics professor to conduct a pricing experiment. Here is her report: cation 1: A 10% increase in price resulted in a 5% drop in the quantity demanded. cation 2: A 10% increase in the price resulted in a 20% drop in the quantity demanded. ing this information, how should you alter your pricing policy to increase your revenue at each location? (

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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tion 14
Suppose you own two Domino's Pizza franchises in your town. After reading the latest issue of Pizza Monthly, you have concluded that both of your locations are generating below average revenue. You hire a
ocal economics professor to conduct a pricing experiment. Here is her report:
ocation 1: A 10% increase in price resulted in a 5% drop in the quantity demanded.
ocation 2: A 10% increase in the price resulted in a 20% drop in the quantity demanded.
sing this information, how should you alter your pricing policy to increase your revenue at each location? (
the toolbar, press ALT+F10 (PC) or ALT-FN-F10 (Mac
Transcribed Image Text:tion 14 Suppose you own two Domino's Pizza franchises in your town. After reading the latest issue of Pizza Monthly, you have concluded that both of your locations are generating below average revenue. You hire a ocal economics professor to conduct a pricing experiment. Here is her report: ocation 1: A 10% increase in price resulted in a 5% drop in the quantity demanded. ocation 2: A 10% increase in the price resulted in a 20% drop in the quantity demanded. sing this information, how should you alter your pricing policy to increase your revenue at each location? ( the toolbar, press ALT+F10 (PC) or ALT-FN-F10 (Mac
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