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You work for Price WatermanCoopers as a market analyst. PWC has been hired by the owner of two Burger King restaurants located in a suburban
You work for Price WatermanCoopers as a market analyst. PWC has been hired by the owner of two Burger King restaurants located in a suburban Atlanta market area to study the demand for its basic hamburger meal packagereferred to as "Combination on its menus. The two restaurants face competition in the Atlanta suburb from five other hamburger restaurants three MacDonalds and two Wendy's restaurantsand three other restaurants serving "drivethrough" fast food a Taco Bell, a Kentucky Fried Chicken, and a small familyowned Chinese restaurant
The owner of the two Burger King restaurants provides PWC with the data shown in Table Q is the total number of Combination meals sold at both locations during each week in P is the average price charged for a Combination meal at the two locations.Prices are identical at the two Burger King locations. Every week the Burger King owner advertises special price offers at its two restaurants exclusively in daily newspaper advertisements. A is the dollar amount spent on newspaper ads for each week in The owner could not provide PWC with data on prices charged by other competing restaurants during For the oneyear time period of the study, household income and population in the suburb did not change enough to warrant inclusion in the demand analysis.
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