The local Greek restaurant makes such great chicken souvlaki that consumers do not respond much to a change in the price.If the owner is interested only in increasing revenue,what should he do
A)He should lower the price of the chicken souvlaki.
B)He should leave the price of the chicken souvlaki alone.
C)He should raise the price of the chicken souvlaki.
D)He should reduce costs.

Question

Quizplus · Accepted Answer

Since the customers already value the chicken souvlaki highly, increasing the price would not significantly deter them from purchasing it. The owner can take advantage of this and raise the price to increase revenue. However, the owner should also consider the cost of producing the chicken souvlaki and ensure that the new price still provides a reasonable profit margin. Reducing costs is also a viable option, but it may not be as effective in increasing revenue as raising the price.

The Local Greek Restaurant Makes Such Great Chicken Souvlaki That