If Sam, the Pizza Man, Lowers the Price of His

question 100

Multiple Choice

If Sam, the Pizza Man, lowers the price of his pizzas from $6 to $5 and finds that sales increase from 400 to 600 pizzas per week, then the demand for Sam's pizzas in this range is:

• A) inelastic.
• B) elastic.
• C) unit elastic.
• D) inferior.

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Definitions:

Reporting Entity

A reporting entity refers to any business, organization, or unit that has legal and economic responsibilities to report its financial and operational data.

Peak Load Demand

The maximum amount of power or resources required at a specific time or period.

Car Dealers

Businesses authorized to sell new or used cars and often offer maintenance services, warranty repairs, and financing options.

Rebates

Partial refunds to consumers after the purchase of a product, often used as a marketing strategy to increase sales.