Every Month Olivier Buys Exactly 6 Take-Out Pizzas Even Though

question 84

Multiple Choice

Every month Olivier buys exactly 6 take-out pizzas even though the price may fluctuate significantly.Apparently,Olivier's price elasticity of demand for take-out pizza is

• A)-1.
• B)0.
• C)1.
• D)6.
• E)infinity.

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Definitions:

Financial Reporting

The communication of financial information, such as balance sheets and income statements, to stakeholders to help in decision-making.

Contribution Margin

The differential between sales and variable costs, indicative of a product's profitability before fixed costs are subtracted.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production expenses, in contrast to fixed costs.

Fixed Manufacturing Cost

Expenses that do not change with the level of production, such as rent for factory premises, salaries for permanent staff, and depreciation of equipment.