The Squish, an upscale 1 5 0 - seat restaurant, revises its menu every six months. The
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Question:
The Squish, an upscale seat restaurant, revises its menu every six months. The revisions are
based, in part, on the price elasticity of demand for their menu items. During the thirtyday periods
before and after the last menu revision, the selling prices and quantity sold of three items were as
follows:
Item Prior to revision After revision
Price Quantity Price Quantity
Super Burger $ $
Golden Chicken $ $
Ocean Delight $ $
The above sales quantities have remained fairly constant each month since the last menu revision.
Q: Compute the price elasticity of demand for each menu item.
Q: Advise Kay Rae, the manager, of the implications of your results for each menu item.
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