If Pizza Hut decreases its price for a large pizza by 25% and this leads to a 75% increase in sales,we can conclude that demand is relatively elastic with regard to price.

Question

Quizplus · Accepted Answer

A 25% decrease in price led to a significant 75% increase in sales, indicating that consumers are sensitive to price changes and will increase demand when prices are lowered. This suggests that demand is relatively elastic with regard to price.

If Pizza Hut Decreases Its Price for a Large Pizza