Problem
Suppose Bobby, the owner-manager of Bobby's Red Hot BBQ restaurant, projects the following demand for his Baby Back Rib platter:
|
Price ($)
|
Quantity Purchased (per night)
|
|
9
|
110
|
|
11
|
100
|
|
13
|
80
|
a. Calculate the price elasticity of demand between $9 and $11.
b. Is the price elasticity of demand between $9 and C$1 1 elastic, unit elastic, or inelastic?
c. Will Bobby's total revenue rise if he increases the price from $9 to $1 l?
d. Calculate the price elasticity of demand between $11 and $13.
e. Is the price elasticity of demand between $1 I and $13 elastic, unit elastic, or inelastic?
f. Will Bobby's total revenue rise if he increases the price from $1 1 to $13?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.