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Answer to Question #93074 in Microeconomics for zanele
Question #93074
A coffee shop is evaluating the effect of cutting the price of premium coffee from R40 to R38 a cup. Current sales are 3 800 cups per year. The firm believes the price increase will result in selling 200 additional cups. It also expects increased sales of chocolate cake, as a result of the coffee promotion - from 200 to 220 cakes per year
Expert's answer
Current sales are 3 800 cups per year
increase sales 3800+200= 4000
coffee promotion - from 200 to 220 cakes per year
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But how is this an answer? The question was incomplete, here is the remainder or the question from the same assignment "What is the arc cross elasticity of demand for cakes with respect to coffee?" Please proceed
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