.Suppose that a busy restaurant charges $9 for its octopus appetizer. At this price, an average of 48 people orders the dish each night. When it raises the price to $12, the number ordered per night falls to 42.   Assuming that demand is linear, find the demand curve the restaurant faces.     What price should the restaurant charge to maximize revenues?

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
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Chapter6: Demand Relationships Among Goods
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  4. 2.suppose that a busy restaurant charges $9 for its octopus appetizer. at this price, an average of 48 people orders the dish each night. when it raises the price to $12, the number ordered per night falls to 42. assuming that demand is linear, find the demand curve the restaurant faces. what price should the restaurant

Question: 2.Suppose That A Busy Restaurant Charges $9 For Its Octopus Appetizer. At This Price, An Average Of 48 People Orders The Dish Each Night. When It Raises The Price To $12, The Number Ordered Per Night Falls To 42. Assuming That Demand Is Linear, Find The Demand Curve The Restaurant Faces. What Price Should The Restaurant

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2.Suppose that a busy restaurant charges $9 for its octopus appetizer. At this price, an average of 48 people orders the dish each night. When it raises the price to $12, the number ordered per night falls to 42.

 

  1. Assuming that demand is linear, find the demand curve the restaurant faces.

 

 

  1. What price should the restaurant charge to maximize revenues?
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