The owner of a restaurant is considering lowering menu prices to draw in more customers.He is debating
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The owner of a restaurant is considering lowering menu prices to draw in more customers.He is debating between lowering the price for the steak appetizer or the salmon appetizer.When he lowered prices last year from $ 15 to $ 13 per steak, the steak sales increased from 75 per week to 100 per week.A decrease in the price of salmon appetizer from $ 17 to $ 15, increased sales from 40 to 75 meals per week.Which entre should he choose to put on sale? Justify your answers using concept of price elasticity of demand and total revenues. Note: Your answers should be detailed with proper citations.
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