**Transcription for Educational Website:**---**Hamburger Pricing Strategy for Johannesburg Burger Supply, Inc.**As a marketing consultant for Johannesburg Burger Supply, Inc., your task is to determine an optimal unit price for hamburgers to maximize weekly revenue. For simplicity, assume the demand equation for Johannesburg hamburgers is linear. **(a)** Your market research provides the following sales data: - At a price of $2.00 per hamburger, weekly sales are 2000 units.- When the price increases to $4.00 per hamburger, sales drop to zero.Use this data to establish the linear demand function $q(p)$, where $p$ denotes the price per hamburger and $q$ represents the number of hamburgers sold weekly at that price.\[q(p) = \_\_\_\_\_\_ \, \text{(input box)} \, \times \]**(b)** Calculate the price elasticity of demand. \[E(p) = \_\_\_\_\_\_ \, \text{(input box)} \, \times \]**(c)** Effects of Pricing Adjustments:When the hamburger price increases by 1% from $2.00, the demand:- Decreases by **1%**.- Demand is **of unit elasticity**. ---This educational exercise involves deriving a demand function and understanding how price changes affect demand, a fundamental concept in economics relating to price elasticity.

At a price of $2 per hamburger, the sales amount is 2000 per weekAt the price of $4 per hamburger,…

You have been hired as a marketing consultant to Johannesburg Burger Supply, Inc., and you wish to come up with a unit price for its hamburgers in order to maximize its weekly revenue. To make life as simple as possible, you assume that the demand equation for Johannesburg hamburgers is linear. (a) Your market studies reveal the following sales figures: When the price is set at $2.00 per hamburger, the sales amount to 2000 per week, but when the price is set at $4.00 per hamburger, the sales drop to zero. Use these data to find the linear demand function q(p), where p is the price per hamburger and q is the number of hamburgers they sell at that price per week. q(p) = X (b) Find the price elasticity of demand. E(p) = x (c) When you raise the price by 1% from $2 per hamburger, the demand decreases ✓ by 1 Demand is of unit elasticity. ✓✓✔ %.

You have been hired as a marketing consultant to Johannesburg Burger Supply, Inc., and you wish to come up with a unit price for its hamburgers in order to maximize its weekly revenue. To make life as simple as possible, you assume that the demand equation for Johannesburg hamburgers is linear. (a) Your market studies reveal the following sales figures: When the price is set at $2.00 per hamburger, the sales amount to 2000 per week, but when the price is set at $4.00 per hamburger, the sales drop to zero. Use these data to find the linear demand function q(p), where p is the price per hamburger and q is the number of hamburgers they sell at that price per week. q(p) = X (b) Find the price elasticity of demand. E(p) = x (c) When you raise the price by 1% from $2 per hamburger, the demand decreases ✓ by 1 Demand is of unit elasticity. ✓✓✔ %.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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