In Bahrain, the Famous Australian Casual Restaurant, the Crepe Café

Multiple Choice

In Bahrain, the famous Australian casual restaurant, The Crepe Café, offers a lunch menu that has exactly the same meals as the dinner menu but at much lower prices. The same pricing strategy is applied by Applebees, Steak House, and some Indian restaurants across the Gulf region. Based on the information above, what can you conclude about the price elasticity of demand for going out for dinner?

A) Customers who go out for dinner more often are likely view going out for lunch as a substitute for going out for dinner, so making this group pay less for lunch will have a relatively small impact on demand for going out for dinner .
B) Customers who go out for dinner are likely to have a more elastic demand than customers who go out for lunch.
C) Customers who go out for dinner are likely view this as a complement to having take -aways, so making this group pay less for lunch will have a relatively small impact on demand for going out for dinner .
D) Customers who go for dinner are likely to have less elastic demand compared with those who go for lunch.