The San Antonio Winery, located in Ontario, California, sells two main types of wine: Chardonnay and...

Transcribed Image Text:

The San Antonio Winery, located in Ontario, California, sells two main types of wine: Chardonnay and Riesling. The winery is seeking to increase its sales revenue but does not want to lower the price of its wines for fear that they will then be viewed as low-quality wines. The winery would like to raise the price of one of its wines but is not sure which wine's price it should raise. The managers have hired you to advise them on the best course of action. You have been given the following information about the prices and quantities of the two wines in the past. The last time the winery changed the price for Chardonnay, the price was increased from $10 to $12 a bottle, and number of bottles demanded per week was observed to decrease from 50 to 40 bottles a week. The last time the winery changed the price of Riesling, the price was increased from $15 to $25 a bottle, and the number of bottles demanded decreased from 80 to 70 bottles a week. Use the given information given to decide which wine's price should be increased to increase the winery's total revenue, assuming that the current price elasticities of demand are the same as the past? Show your work. Edit View Insert Format Tools Table 12pt Paragraph BIUALT The San Antonio Winery, located in Ontario, California, sells two main types of wine: Chardonnay and Riesling. The winery is seeking to increase its sales revenue but does not want to lower the price of its wines for fear that they will then be viewed as low-quality wines. The winery would like to raise the price of one of its wines but is not sure which wine's price it should raise. The managers have hired you to advise them on the best course of action. You have been given the following information about the prices and quantities of the two wines in the past. The last time the winery changed the price for Chardonnay, the price was increased from $10 to $12 a bottle, and number of bottles demanded per week was observed to decrease from 50 to 40 bottles a week. The last time the winery changed the price of Riesling, the price was increased from $15 to $25 a bottle, and the number of bottles demanded decreased from 80 to 70 bottles a week. Use the given information given to decide which wine's price should be increased to increase the winery's total revenue, assuming that the current price elasticities of demand are the same as the past? Show your work. Edit View Insert Format Tools Table 12pt Paragraph BIUALT