Le crueset is a french restaurant that recently increased, Ask an Expert

Economics

Le Crueset is a French restaurant that recently increased the average price of its meals by 4%. As a result, the number of customers dropped by 3%. Based on this information, what is the price elasticity of demand for meals at Le Crueset? How will this 4% increase of the average price of meals impact total revenue at Le Crueset?

Another French restaurant in the area that competes with Le Crueset decided to reduce the average price of its meals by 3%. How will this decision likely impact the demand for meals at Le Crueset?

Assume that the average disposable in the area in which operates increases by 5% over the last year. As a result, the number of customers at Le Crueset increased by 3%. Based on this information, what is the income elasticity of demand for meals at Le Crueset? Are meals at Le Crueset considered normal goods?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91721142

Have any Question?Write your Review or question?

Related Questions in Business Economics

Describe the difference in economic profit between a

Describe the difference in economic profit between a competitive firm and a monopolist in both the short and long run. Which should take longer to reach the long-run equilibrium?

Carefully explain how the negative price elasticity of

Carefully explain how the negative price elasticity of demand affect the revenue or profit of an organization?

Naomi always eats bagels with 1 ounce of cream cheese each

Naomi always eats bagels with 1 ounce of cream cheese. Each bagel eaten in this way provide 15 units of utility. Excess cream cheese or excess bagels do not add to Naomi's utility. Explain the nature of Naomi's utility f ...

Should we be renegotiating nafta yes or no if it is

Should we be renegotiating NAFTA? yes or no? If it is renegotiated, should it be replaced? What reasons would make it better in your point of view? What is the best argument you can make why NAFTA should or should not be ...

Assume that the pizza market consists of two firms conans

Assume that the pizza market consists of two firms, Conan's and Pizza Hut. The price of a Conan pizza is denoted by Pc and the price of a Pizza Hut Pizza is P h. Both sellers have a marginal cost of $5 for another pizza ...

You are given the sample mean and the population standard

You are given the sample mean and the population standard deviation. Use this information to construct the 90% and 95% confidence intervals for the population mean. A random sample of 44 gas grills has a mean price of $ ...

Disequilibriumsuppose the market for pizzas is unregulated

Disequilibrium Suppose the market for pizzas is unregulated. That is, pizza prices are free to adjust based on the forces of supply and demand. If a shortage exists in the pizza market, then the current price must be____ ...

What changes would you propose if you were on the central

What changes would you propose if you were on the central planning committee that made decisions for your city?

How can a graph or chart of data help you understand the

How can a graph or chart of data help you understand the results? What is a frequency table? Describe an example where a frequency table can be used in life.

Multicar accident often result in fatalities across the

Multicar accident often result in fatalities across the nation, records are kept of the total number of accident involving 10 or more vehicles. Over the past 25 years, the average number of accidents involving 10 or more ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert