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.
Answer: A
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