Recall the Application about food and drink pricing during "happy hour" at bars and restaurants to answer the following question(s).
-Recall the Application. During "happy hour," many bars and restaurants face an increase in demand for food and drink, and these establishments often cut prices during these times of increased demand. When this demand increases, the bars and restaurants face a ________ demand curve.

Question

Quizplus · Accepted Answer

During happy hour, customers are more price-sensitive and responsive to changes in prices, hence the demand curve becomes more elastic. This means that a small change in price can lead to a larger change in the quantity demanded.

Recall the Application About Food and Drink Pricing During "Happy