Fast food prices are jumping. They could go even higher

 

"So far, [increases in price] hasn't hit sales (CNN. Feb. 2022). Here are some questions.

1. What must be true about the price elasticity of demand for fast food if sales remain constant when all fast food restaurants raise price by 10% and nothing else changes to affect the demand for fast food? Sales is another term for total revenue.
2. What must be true about the price elasticity of demand for fast food if sales increase when all fast food restaurants raise price by 10% and nothing else changes to affect the demand for fast food?
3. Suppose that the price elasticity of demand for fast food is -1. Would the sales at a local McDonald's increase, decrease, or remain constant if it raises prices, all other fast food restaurants maintain their prices, and nothing else changes to affect the demand for fast food?
4. Does the articles describe other changes that might affect sales besides the price increases? Would these changes tend to increase or decrease sales? What do they imply about the price elasticity of demand for fast food?

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