The Owner of Bob's Breakfast Just Bought Nancy's Famous Breakfast

Multiple Choice

The owner of Bob's Breakfast just bought Nancy's Famous Breakfast across the street.They offer the same breakfast items on the menu.The demand for Bob's Breakfast is more elastic than Nancy's Famous Breakfast.What should the owner do?

A) Reduce the prices at Nancy's Famous Breakfast
B) Raise the prices at Bob's Breakfast
C) Raise the prices at both restaurants equally
D) Raise the prices at both restaurants,but raise the price of Bob's Breakfast more