When the price of enchiladas is $1.00, a restaurant sells 1200 enchiladas per day. The restaurant decides to increase the price to $1.10 and ends up selling 1100 enchiladas per day. What do we know about the price elasticity of demand for enchiladas at this restaurant from these numbers? The price elasticity of demand for enchiladas is

When the price of enchiladas is $1.00, a restaurant sells 1200 enchiladas per day. The restaurant decides to increase the price to $1.10 and ends up selling 1100 enchiladas per day. What do we know about the price elasticity of demand for enchiladas at this restaurant from these numbers? The price elasticity of demand for enchiladas is

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

When the price of enchiladas is $1.00, a restaurant sells 1200 enchiladas per day. The
restaurant decides to increase the price to $1.10 and ends up selling 1100 enchiladas per
day. What do we know about the price elasticity of demand for enchiladas at this
restaurant from these numbers?
The price elasticity of demand for enchiladas is
unit elastic
inelastic
O perfectly elastic
elastic
perfectly inelastic

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