Pizza Hut lowers the price of its pizza. The price elasticity of demand for Pizza Hut pizza equals 0.3. What happens to the Pizza Hut's total revenue?
A) nothing
B) It increases.
C) It decreases.
D) It becomes negative.
E) It might change, but more information is needed to determine if it increases, decreases, or does not change.
C
You might also like to view...
Refer to the figure above. If the government fixes a minimum wage rate at $15, the unemployment in the market will be:
A) 20 units of labor B) 0 units of labor C) 10 units of labor D) 30 units of labor
The first claim on a corporation's after-tax profits is held by the
a. consumers b. managers c. stockholders d. bondholders e. government
The opportunity cost of holding a dollar is
A. the interest yield that could have been earned by holding some other asset. B. the price of a government bond. C. a dollar. D. less than a dollar.
The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A