Sashi ME Case study

1. As though teaching this concept to someone learning it, provide explanations and original examples (with numbers) of elastic and inelastic demand. Also explain how an understanding of elasticity can help in making decisions about whether to raise, lower, or maintain prices where they are. Your answer should be a page long – and more is fine.

2. A restaurant in Georgia has recently opened back up with restricted seating due to COVID. The are a popular mid-price restaurant with a devoted following but also with plenty of competition nearby. To help make up for demand restrictions, they are considering raising prices to help offset the decreased number of diners. Based on your reading of chapter 6, what factors should they consider in constructing pricing strategies and which approaches would work best? Also, how might these change as restrictions loosen and more diners can be served? Your answer should be one page or more.

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