Demand

1. Bernie sells more hamburgers when they are sold at $1 than $5 because according to human behavior, if a price is lower they will buy more of it because they don' have to spend as much from their income. This connects to elasticity of demand because the hamburgers are price sensitive and the price affects their buying habits.

2. Bernie sells more hamburgers than Sally sells salads when they are at the same price because it has to do with preferences and tastes of the consumers. In this case the preferences of the consumer are hamburgers.

3. A demand factor that would increase sales for both Bernie's and Sally's could be if there were expectations with the consumers that the economy will improve, therefore they would buy more products from both businesses.

Extra Credit:

A raise in price could affect the total revenue of the business because when the price increases, human behavior tells us that people will buy less of that product. Also, the related goods that may be compliments to that product will also not be bought as much since the demand of the main product went down. All in all, the revenue of the business would drop. One factor that could affect elasticity is necessities because they are inelastic and people will buy their necessities no matter what the price is. Moreover, these necessities such as water are not price sensitive.