Multiple Choice
The owner of a pizza shop observes that when she raises the price of a large pizza, her total revenue decreases, and when she lowers the price of a large pizza, her total revenue increases. This suggests that:
A) pizza lovers act irrationally.
B) the demand for her large pizzas is elastic with respect to price.
C) there are few good substitutes for a large pizza.
D) the demand for her large pizzas is inelastic with respect to price.
Correct Answer:
Verified
Correct Answer:
Verified
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