Using Excel, Big Pies Pizzas Estimates the Log- Linear Weekly

question 95

Multiple Choice

Using Excel, Big Pies Pizzas estimates the log- linear weekly demand function for their pizza to be ln Q^d = 8.23 - (1.50 × ln P) . Which of the following statements is true?

• A)The price elasticity of demand for Big Pies Pizzas increases as the price of the pizzas increases.
• B)The demand for Big Pies Pizzas is elastic.
• C)The demand for Big Pies Pizzas is inelastic.
• D)The price elasticity of demand for Big Pies Pizzas decreases as the price of the pizzas decreases.

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Definitions:

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell it, and convert the sale into cash.

Financial Data

Financial data consists of records, figures, and quantitative information related to the financial status, operations, and performance of an entity.

Dividends

Payments made by a corporation to its shareholder members; it is the portion of corporate profits paid out to stockholders.

Average Collection Period

The average time it takes for a business to receive payments owed by its customers, indicating the effectiveness of its credit and collection policies.