Essay
Suppose the demand for Big Macs at McDonald's restaurants in the United States has a price elasticity of demand of 0.6.Based on simple economic theory,will the company's revenues increase if Big Mac prices were raised? Would your pricing recommendation change if you learned the cross-price elasticity of demand for large soft drinks with respect to Big Mac prices is -1.8 and the cross-price elasticity of demand for large French fries with respect to Big Mac prices is -2.4? Explain.
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