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

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Definitions:

Vestibular Duct

A part of the inner ear that is involved in hearing and balance, also known as the scala vestibuli in the cochlea.

Utricle

A sac-like structure in the vestibular system of the inner ear that plays a key role in detecting changes in gravitational forces and linear movements.

Cupula

A gelatinous, dome-shaped structure within the inner ear that responds to changes in rotational acceleration, aiding in balance.

Ampulla

An enlargement or dilatation in a canal or duct, commonly referring to the dilated end of ducts such as the bile duct.