1.A restaurant estimates its price elasticity of demand is -4.0 and its income elasticity is 2.0. Income has dropped 10% (.10) due to unemployment during the Pandemic. Quantity demanded before the Pandemic was 100 plates per day. If the restaurant cuts price by 5% (.05), what will be the expected number of plates sold per day once it reopens?

Answer rating: 100% (QA)

Answer 96 plates Solution A decrease in income due to pandemic results in a decre... View the full answer