Question

suppose the business could charge no more than $0.60 per do if the price increased from $0.60 per dozen to $0.80 per dozen, would the business want to sell more tortillas each day? why?

Answer 1

To determine if the business would want to sell more tortillas each day, we need to consider the concept of price elasticity of demand.

Step-by-step explanation:

In this case, the price of tortillas is increasing from $0.60 per dozen to $0.80 per dozen. To determine if the business would want to sell more tortillas each day, we need to consider the concept of price elasticity of demand. Price elasticity of demand measures how responsive the quantity demanded of a good is to changes in its price.

If the demand for tortillas is elastic, meaning that a small increase in price leads to a large decrease in quantity demanded, then the business may not want to sell more tortillas each day. On the other hand, if the demand for tortillas is inelastic, meaning that a change in price has a limited impact on quantity demanded, then the business may still want to sell more tortillas each day.