Joe owns a restaurant. Many of the restaurants that he competes with recently closed, shifting his perceived demand curve. The following 2 tables show his old and new perceived demand curves.

Assume that Joe can only choose from the quantities of output given in the table. By how much does the price that he charges change after the restaurants leave the market?
A) increase by 3
B) decrease by 3
C) increase by 4
D) decrease by 4

Question

Joe owns a restaurant. Many of the restaurants that he competes with recently closed, shifting his perceived demand curve. The following 2 tables show his old and new perceived demand curves.

Assume that Joe can only choose from the quantities of output given in the table. By how much does the price that he charges change after the restaurants leave the market?
A) increase by 3 
B) decrease by 3 
C) increase by 4 
D) decrease by 4

Quizplus · Accepted Answer

The Answer of Joe owns a restaurant. Many of the restaurants that he competes with recently closed, shifting his perceived demand curve. The following 2 tables show his old and new perceived demand curves.

Assume that Joe can only choose from the quantities of output given in the table. By how much does the price that he charges change after the restaurants leave the market?
A) increase by 3 
B) decrease by 3 
C) increase by 4 
D) decrease by 4

Joe Owns a Restaurant