If a Pizza Hut Raises the Price of a Slice

question 315

Multiple Choice

If a Pizza Hut raises the price of a slice of pizza from $3.00 to $3.25,the quantity demanded decreases from 1,500 slices per week to 1,300 slices per week.The demand for slices of pizza is ________ and the total revenue received by this Pizza Hut ________.

• A) elastic; decreases
• B) inelastic; decreases
• C) elastic; increases
• D) inelastic; increases
• E) unit elastic; does not change

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Definitions:

Goals of Science

The objectives of scientific inquiry, generally including the description, prediction, explanation, and control of natural phenomena, based on empirical evidence and systematic observation.

Correlation

A statistical measure that describes the extent to which two variables change together, but does not imply causation.

Correlated

Correlated refers to a statistical relationship between two or more variables where a change in one is associated with a change in another, indicating a possible connection or causality.

Sampling Bias

A statistical bias that occurs when a sample is collected in such a way that some members of the intended population are less likely to be included than others, resulting in a non-representative sample.