Write it in a different words: Your interpretation appears to hinge on the principle of price elasticity of demand, which gauges the extent to which the demand for a product changes in response to a price alteration. In this instance, you're presuming that the demand for buns is inelastic, implying that a 10% price hike would result in less than a 10% drop in demand (in this case, a 5% decrease). If your assumptions are accurate, your analysis is valid. However, it's crucial to remember that these assumptions may not always be accurate. For instance, if the demand for buns is more elastic than you anticipated, a 10% price rise could cause a more than 5% drop in demand, potentially reducing total revenue. Likewise, if costs fluctuate, this could also affect your profit estimates. In summary, while your analysis indicates that raising the price of buns could boost profits, this conclusion relies on the correctness of your assumptions. It would be wise to verify these assumptions in a controlled setting or through market research before adopting such a strategy