Dominic sells pizza slices for $5 on the Santa Monica Pier. He currently sells 500 slices of pizza per day.This is a perfectly competitive business, and Dominic faces a perfectly price elastic demand curve. If he wants to try to increase daily revenues to $3,000, he should
A. lower the price of his pizza to $4 per slice and try to sell 750 slices per day.
B. keep the price at $5 per slice and produce 600 slices per day.
C. do nothing since he can do nothing to increase revenue.
D. raise the price of his pizza to $6 per slice and continue to sell 500 slices per day.
Answer: B
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Open market operations are conducted by the __________.
Fill in the blank(s) with the appropriate word(s).
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