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Sales figures show that Mi Guadalajara Mexican Restaurant sold 500 beef fajitas, one of its most popular plates, per week when their price was

   

Sales figures show that Mi Guadalajara Mexican Restaurant sold 500 beef fajitas, one of its most popular plates, per week when their price was $16.95 each and 480 beef fajitas per week at their current price of $17.95 each. Use the following formulas to find the linear demand function: slope:m = Y2-y 12-1 y-y =m(x-x) b. Express the revenue R as a function of the price p. c. Obtain a formula for the price elasticity of demand E. d. If the owner decides to increase the selling price to $18.95 per beef fajita. What would be the corresponding price elasticity of demand? Round to two decimal places. Interpret your answer.

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