Suppose That the Demand for Pizza Is Inelastic

question 19

Multiple Choice

Suppose that the demand for pizza is inelastic. If a pizzeria decided to lower the price of pizza, total revenue would

• A) increase.
• B) decrease.
• C) stay the same.
• D) be maximized.

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Definitions:

Probability

A measure of the likelihood of occurrence of a particular event or outcome, often expressed as a number between 0 and 1.

NORM.DIST

A function in various statistical software that returns the normal distribution for a specified mean and standard deviation.

Standard Error

Standard error is a statistical measure that estimates the accuracy with which a sample distribution represents a population by using standard deviation.

Population Standard Deviation

Population Standard Deviation is a measure of the dispersion or spread of all the values in a given population, indicating how much the individual values in the population differ from the population mean.