2. Dixie Chicken sells an average of 1973 Freddie Burger platters per month over the past 6 months at an average of $8.75 each. The price elasticity of Demand for this platter is estimated to be -0.45.

If Dixie Chicken increases the price of the platter by 20% calculate how many Freddie Burger platters will Dixie Chicken sell and THEN compute the Total Revenue for the sales of Burger platters?

** HINT - use the basic formula: Elasticity = (Unknown Q / Change in Price) x (Average Price / Average Quantity sold)

** enter your answer for THE TOTAL REVENUE FOR THE Burger platters that will be sold FOLLOWED by whether the revenue is HIGHER or LOWER.

e.g. 15680 HIGHER

or

e.g. 18620 LOWER

NO $ signs, NO quotes NO comma's .... JUST the number ( 18620 ) followed by the word: HIGHER or LOWER

DO NOT ROUND YOUR ANSWERS WHILE DOING YOUR CALCULATIONS - USE 2 DECIMAL PLACEMENTS PLEAse

3. Dixie Chicken sells an average of 1900 Freddie Burger platters per month over the past 6 months at an average of $8.97 each. The price elasticity of Demand for this platter is estimated to be -1.11.

If Dixie Chicken decreases the price of the platter by 20% how many Freddie Burger platters will Dixie Chicken sell?

** HINT - use the basic formula: Elasticity = (Unknown Q / Change in Price) x (Average Price / Average Quantity sold)

** enter your answer for HOW many Burger platters will be sold FOLLOWED by whether the elasticity value is inelastic or elastic.

e.g. 1274 elastic

or

e.g. 2814 inelastic

ONLY ENTER NUMBERS - NO $ AND NO COMMAS - THANK YOU

DO NOT ROUND YOUR ANSWERS WHILE DOING YOUR CALCULATIONS - USE 2 DECIMAL PLACEMENTS PLEASE