What is cross-price elasticity of burgers with chicken

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Taco Bell. Assume the price elasticity of tacos is 1.13, and the current price is $0.99. If we sell an average of 220/day, how will sales change if the prices goes up to $1.09? What will happen to total revenue? Our other product, burritos, has a current price of $1.29 and we sell, on average, 190/day. If we drop the price to $1.19 and then sell 224/day, what can we infer about price elasticity? Compare the price elasticity of both products and recommend a pricing strategy for each.

Fast Food. Wendy's recently changed the price of their classic Single burger from $1.39 to $1.49. Sales went from 497/day to 366/day. Across the street, the Bojangles chicken sandwich maintained its price of $1.99 but sales rose from 172/day to 188/day. What is the cross-price elasticity of burgers with chicken sandwiches? Are these products complements or substitutes and how do you know?

Reference no: EM13242593

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