Solved

A Manufacturer of Frozen Pizzas Found That Total Revenue Decreased

Question 171

Multiple Choice

A manufacturer of frozen pizzas found that total revenue decreased when price was lowered from $5 to $4. It was also found that total revenue decreased when price was raised from $5 to $6. Thus,


A) the demand for pizza is elastic above $5 and inelastic below $5.
B) the demand for pizza is elastic both above and below $5.
C) the demand for pizza is inelastic above $5 and elastic below $5.
D) $5 is not the equilibrium price of pizza.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents