Your intuition is correct – a 6% increase would result in about a 14% decrease, and in general when elastically-demanded goods increase in price you’ll see a drop in revenue.

]]>However, If I increase price by 6% my gross revenue will likely not increase by 6% because dining is price elastic right (2.3 is the number you cited above)?. So using the elasticity above an increase in 6% will result in 13.8% fewer items being sold? Well this means my gross revenues may decrease if I’m not mistaken.

Where did you find that 2.3 elasticity number?

Thanks

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