When the Price of Pizzas Rises by 4 Per Cent

question 107

Multiple Choice

When the price of pizzas rises by 4 per cent, the quantity demanded decreases 10 per cent. What is the price elasticity of demand for pizza?

• A) 0.4
• B) 40.0
• C) 25.0
• D) 2.5
• E) 10.0

---

Definitions:

Radical Innovation

A fundamental change that disrupts or creates whole new industries by introducing groundbreaking products, technologies, or processes.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world’s nations and resulting in significant military and civilian casualties.

Entrepreneurial Transformation

The process by which individuals or businesses evolve to adapt to changing market demands and opportunities innovatively.

Corporate America

encompasses the corporate sector of the United States, highlighting its business practices, culture, and impact on society.