A Manufacturer of Frozen Pizzas Found That Total Revenue Decreased

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. Thus,

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) $5 is not the equilibrium price of pizza.