Alright guys, thanks to suggestions in the other thread i made up about festival food, my club has decided on funnel cakes, YAY. So, we're trying to decide on the price. So far, these are the usual prices for food at the festival:
teriyaki chicken, orange chicken, 2 slices of pizza ~ 3 dollars
strawberry daquiri, cappacinno blast - 1.50
So, for how much should we sell the funnel cake? I was talking to my econ teacher, and he said anywhere from 2-2.25 should be fine. But what i was wondering was if we sold it at 2.50, should we have a deal that costs 4 dollars for two? If we do this though, we can't sell it for two dollars, since, well, it's not much of a deal. Since funnel cake is very cheap to produce, most of this stuff is pure profit. We just need to sell as many as possible. How can we go about finding the price at which most people would buy, and we would receive the maximum profit. THANKS.
teriyaki chicken, orange chicken, 2 slices of pizza ~ 3 dollars
strawberry daquiri, cappacinno blast - 1.50
So, for how much should we sell the funnel cake? I was talking to my econ teacher, and he said anywhere from 2-2.25 should be fine. But what i was wondering was if we sold it at 2.50, should we have a deal that costs 4 dollars for two? If we do this though, we can't sell it for two dollars, since, well, it's not much of a deal. Since funnel cake is very cheap to produce, most of this stuff is pure profit. We just need to sell as many as possible. How can we go about finding the price at which most people would buy, and we would receive the maximum profit. THANKS.
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