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Assume you own a food truck selling street tacos. The normal selling price for your signature taco is $2.35/taco, and you normally can sell 300
Assume you own a food truck selling street tacos. The normal selling price for your signature taco is $2.35/taco, and you normally can sell 300 tacos at that price on an average day. You decide to try a new lower price by increasing the supply of tacos you typically offer. The new selling price is $2.00/taco. The new amount of tacos sold is 365 tacos. What is the Price Elasticity of Demand in this range? Was it a good idea? Does the Total Revenue test confirm it? Why?
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