You are the owner of a quick stop shop across the street from a college specializing in a burger named after the school's mascot.It is a specialty in town and on game day is considered a staple for tailgaters.Which of the following would be an accurate assumption, given the above information, if you increase the price of the burger?
A)Total revenue will increase
B)Total revenue will decrease
C)There will be no change in total revenue
D)Hot dog sales will increase

Question

Quizplus · Accepted Answer

Given the burger's popularity, especially on game days, it's reasonable to assume that demand is relatively inelastic. This means that an increase in price is likely to lead to a smaller percentage decrease in quantity demanded, thus increasing total revenue.

You Are the Owner of a Quick Stop Shop Across