When the price of a Caesar salad is $5.00, the demand for Caesar salads is elastic, and when the price is $4.00, the demand is inelastic. If Mike's Roadside Restaurant cuts the price from $5.00 to $4.00, its total revenue from Caesar salads
A) will increase.
B) will decrease.
C) will remain the same.
D) might increase, decrease, or remain the same.

Question

Quizplus · Accepted Answer

The Answer of When the price of a Caesar salad is $5.00, the demand for Caesar salads is elastic, and when the price is $4.00, the demand is inelastic. If Mike's Roadside Restaurant cuts the price from $5.00 to $4.00, its total revenue from Caesar salads
A) will increase.
B) will decrease.
C) will remain the same.
D) might increase, decrease, or remain the same.

When the Price of a Caesar Salad Is $5