The price elasticity of the combo meals were inelastic for the fact that the change in prices the changes in the prices did not alter the demand that is when prices were high the demand was still at the same level and when the prices were low the demand was still unchanged.

Question:

We are perplexed with the outcome of certain price changes at our restaurants. Prior to the pandemic, we sold our Mexican combo, consisting of one beef or chicken taco, one beef or chicken burrito, and one small cup of refried beans for $5.95. At that time, our average shop was selling 600 Mexican combos each week. Once the pandemic hit, our commodity inputs rose in price as did the cost of our labor. We hesitantly raised the price to $6.95, anticipating a major reduction in the weekly quantity of demand. To our amazement, average sales per store only declined by 15 combos per week. Please calculate the coefficient of price elasticity of the combo meal using the Midpoints Formula.