While there are many pizza places in Kutztown,Pappy's Pizza is known for its distinctive deep-dish pizza with an almost pie-like crust,whereas Momma's Pizza is comparable to many other restaurants.Pappy's is likely to find that it can ________ prices to increase total revenue,and Momma's must ________ prices to increase total revenue.
A) raise; lower
B) lower; raise
C) raise; raise
D) lower; lower
E) raise; not change

Question

Quizplus · Accepted Answer

Pappy's Pizza can demand higher prices due to the uniqueness of its product and still attract customers who are willing to pay for it, thus increasing their total revenue. On the other hand, Momma's Pizza cannot differentiate themselves from their competitors and will need to lower their prices to attract more customers and increase total revenue.

While There Are Many Pizza Places in Kutztown,Pappy's Pizza Is