A Manufacturer of Frozen Pizzas Found That Total Revenue Decreased

question 44

Multiple Choice

A manufacturer of frozen pizzas found that total revenue decreased when price was lowered from $5 to $4.It was also found that total revenue decreased when price was raised from $5 to $6.It can be concluded that:

• A)the demand for pizza is elastic above $5 and inelastic below $5
• B)the demand for pizza is elastic both above and below $5
• C)the demand for pizza is inelastic above $5 and elastic below $5
• D)the demand for pizza is inelastic both above and below $5
• E)$5 is not the equilibrium price of pizza

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Definitions:

Inventory Transportation

The process and cost involved in moving inventory from one location to another, usually from warehouses to retailers or customers.

Point to Point

A communication or transportation method that directly connects two locations without any stops in between.

Supply Chain

The series of steps involved in manufacturing and distributing a product.

Faster Transportation

refers to the optimization of delivery and shipping processes to reduce transit times and improve the efficiency of moving goods from origin to destination.