# Question: ive been working to solve this problem answer and explain...

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I've been working to solve this problem, answer and explain. Please help me solve this question

Giovanni’s Pasta Bar recently reduced appetizer prices from $12 to $10 for afternoon “early bird” customers and enjoyed a resulting increase in sales from 85 to 120 orders per day. Beverage sales also increased from 340 to 500 units per day.

A. Calculate the arc price elasticity of demand for appetizers.

B. Calculate the arc cross-priceelasticity of demand between beverage sales and appetizer prices.

C. Holding all else equal,
**would you expect an additional appetizer price decrease to
$8 to cause both appetizer and beverage revenues to rise**?
**Explain.**