2.2 Suppose that a restaurant uses a focus group of regular customers to determine how many customers

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2.2 Suppose that a restaurant uses a focus group of regular customers to determine how many customers would buy a proposed new menu item at various prices. Can this information be used to estimate an inverse demand function? A demand function?

Explain briefly. Would it be possible to use a focus group to generate data that could be used to estimate a demand function including both price and income as explanatory variables?

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Managerial Economics And Strategy

ISBN: 9780135640944

2nd Global Edition

Authors: Jeffrey M. Perloff, James A. Brander

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