Final answer:
The decision to charge higher prices in the café with quality assurance depends on factors such as price elasticity of demand, the cost of implementation, and customer willingness to pay for improved quality.
Step-by-step explanation:
The decision to charge higher prices in the café if quality assurance is introduced would depend on various factors. The owners of LK should consider the price elasticity of demand for their products. If the demand for their café products is relatively inelastic, meaning that customers are less sensitive to price changes, then they may have the opportunity to increase prices while maintaining demand.
However, if the demand for their products is elastic, meaning that customers are more price sensitive, higher prices could lead to a decrease in demand.
Additionally, the owners should also consider the cost of implementing quality assurance measures. If the cost of implementing these measures is substantial, raising prices to cover these costs may be necessary. However, they should also conduct market research to determine if customers are willing to pay higher prices for the improved quality.
In summary, the decision to charge higher prices in the café if quality assurance is introduced should be based on the price elasticity of demand, the cost of implementing quality assurance, and the willingness of customers to pay higher prices for improved quality.