You have been hired by SBK as a strategic consultant in its market analysis. Its major competitor is TO, a business you know well, but there are many other restaurants that sell or potentially could sell the same type of food.

You've done a survey of potential TO biscuit customers; the following table lays out what you found.

Price per		Market		TO		TO
biscuit		Demand		Demand (1)		Demand (2)
10		90		60		0
9		150		100		0
8		210		140		60
7		270		180		180
6		330		220		300
5		390		260		420
4		450		300		450
3		510		340		510
2		570		380		570
1		630		420		630

Your survey took two parts. The first part asked "how many chicken and cheese biscuits will you buy at the following price per day if all restaurants charge this price?" and "how many TO biscuits will you buy at the following price per day if all restaurants charge this price?" The results of these surveys are aggregated and give us the daily quantity demanded for the market as a whole (Market Demand) and for TO in particular (TO Demand (1)). (SBK supplies the rest of the market consumers.)

The second part of the survey began with the price $7 and asked "if SBK keeps its price at $7 and TO raises its price to $x (or reduces its price to $x), how many biscuits will you buy from TO per day?" The responses to that question are aggregated to the totals in the last column (TO Demand (2)).

For the purposes of these questions, you can use the following information about the daily costs at TO. The fixed cost is $250 per day. The variable cost is $4.00 per biscuit.

If SBK were to hold its price at $7, would it be more profitable for TO to raise its price per biscuit to $8 (when compared to $7)? Show your work.