The local pizza restaurant makes such great bread sticks that consumers do not respond much at all to a change in the price.If the owner is only interested in increasing revenue,he should
A) lower the price of the bread sticks.
B) leave the price of the bread sticks alone.
C) raise the price of the bread sticks.
D) reduce costs.

Question

Quizplus · Accepted Answer

Since consumers do not respond much to a change in price, the demand is inelastic. Raising the price will increase revenue because the quantity demanded will not decrease significantly.

The Local Pizza Restaurant Makes Such Great Bread Sticks That