Assume Pyrotex Inc

question 14

Multiple Choice

Assume Pyrotex Inc. estimates the demand for its fireworks to be linear. If the current price charged by Pyrotex is such that the elasticity of demand is equal to 2.5, which of the following statements is true?

• A) Pyrotex will surely increase its profits by decreasing the price of fireworks.
• B) Pyrotex will surely increase its profits by increasing the price of fireworks.
• C) Pyrotex cannot increase its profits by changing the price of fireworks.
• D) Not enough information is provided to determine whether Pyrotex is currently maximizing its profits.

---

Definitions:

Statistical Approach

A method involving the collection, analysis, interpretation, and presentation of data to solve problems or make decisions.

Objective Approach

A method or perspective that is based on facts and devoid of personal feelings or biases, aiming for impartiality and accuracy.

Selection Procedures

The processes and methods used by an organization to identify, evaluate, and choose the most suitable candidates for a position.

Selection Ratio

A measure used in hiring processes to indicate the number of hired individuals out of all applicants.