Suppose a 25 percent decrease in the price of a large pizza increases its sales by 75 percent. We can conclude that the demand is relatively elastic with respect to price.

Question

Quizplus · Accepted Answer

The significant increase in sales in response to a relatively small decrease in price indicates that the demand for large pizzas is relatively sensitive to changes in price, which is a characteristic of relatively elastic demand.

Suppose a 25 Percent Decrease in the Price of a Large