Dominic Sells Pizza Slices for $5 on the Santa Monica

question 235

Multiple Choice

Dominic sells pizza slices for $5 on the Santa Monica Pier. He currently sells 500 slices of pizza per day.This is a perfectly competitive business, and Dominic faces a perfectly price elastic demand curve. If he wants to try to increase daily revenues to $3,000, he should

• A) raise the price of his pizza to $6 per slice and continue to sell 500 slices per day.
• B) lower the price of his pizza to $4 per slice and try to sell 750 slices per day.
• C) keep the price at $5 per slice and produce 600 slices per day.
• D) do nothing since he can do nothing to increase revenue.

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Definitions:

Attachment

An emotional bond that forms between individuals, crucial for personal development, and originated in early childhood.

Patterns of Attachment

The characteristic ways in which individuals relate to others, especially in the context of intimate and caregiving relationships, determined early in life and influencing subsequent relationships.

Infants

Young children from birth to one year of age, characterized by rapid physical, cognitive, and social development.

Cognitive Development

The study of how thinking, problem solving, and reasoning skills evolve through childhood and adolescence.