Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help :( thanks Dylan runs a small Japanese noodle restaurant in a local district. There are quite a lot of restaurants and fast

I need help :( thanks

image text in transcribed
Dylan runs a small Japanese noodle restaurant in a local district. There are quite a lot of restaurants and fast food shops located nearby. a) Dylan always thinks that his Japanese noodle is unique and delicious. It deserves getting a higher price so that he can earn more. Can you explain 'why Dylan wants to increase the price to increase his revenue\" based on your Economics knowledge? Illustrate your explanation with a diagram. (8 marks) b) Two months ago, Dylan increased the menu prices of all the food he provides in his restaurant. However, he is disappointed to nd that this only leads to a signicant drop in the revenue. (i) Explain the reason why the result does not support what Dylan's decision of increasing the menu prices. What is the actual demand condition situation faced by Dylan. Illustrate your explanation with another diagram. (8 marks) (ii) As Dylan wants to increase his total revenue, what is your suggestion? Explain. (4 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics Principles Applications And Tools

Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez

7th Edition

978-0134089034, 9780134062754, 134089030, 134062752, 978-0132555234

More Books

Students also viewed these Economics questions