Answer to Question #117360 in Microeconomics for Asha

Question

Suppose that you are in charge of pricing at a local hotpot restaurant. The business needs to increase revenue and your job is on the line. What should you do to your prices? ​

Answer 1

To increase the revenue I'd suggest to slightly increase the price of soup base as it is a product that every consumer buys. The increase must be little so the demand would not decrease much. Let suppose we increased the price of soup base by 1$, and our restaurant sells 1 000 soups every day, thus our additional revenues will be 1 000$.