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Suppose a restaurant in NYC estimates its price elasticity of demand is -3.0 and its income elasticity is 2.0.It has been shut down but now
Suppose a restaurant in NYC estimates its price elasticity of demand is -3.0 and its income elasticity is 2.0.It has been shut down but now is being allowed to partially reopen at only 50% of its original level of patrons.Suppose this means it will be reduced from serving its original level of 100 plates to a Pandemic level of 50 plates.Income has dropped 10% (.10) due to unemployment during the Pandemic.For the restaurant to meet its Pandemic target of 50 plates served, what percentage change in price will be required?
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