CASE STUDY SCENARIO Allan’ s Fast Store is the only fast food in Duke Town and the factory workers purchase lunch there every day. Mr. Allan, the owner, had lowered the price, which caused an increase in demand. He was very confident that sales ($) would “ go through the roof ”, but sales ($) declined. He is not comfortable with obtaining advice from “those university people”, however, he is desperate and seek your guidance. He wants you to inform him as to the approach he should use to increase sales ($).
HINT : The relationship between TR and price (elasticity)