In order to increase total revenue, the restaurant should increase the price of lunch for business people and reduce the price of lunch for college students.
Elastic demand means that quantity demanded is sensitive to price changes. If demand is elastic and price is decreased, quantity demanded would increase. The increase in quantity demanded would be greater than the decrease in demand and this would lead to an increase in revenue.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one.
To learn more about price elasticity of demand, please check: https://brainly.com/question/18850846
