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Home / Questions / A local pizzeria sells 500 large pepperoni pizzas per week at a price of $20 each Suppose the owner

A local pizzeria sells 500 large pepperoni pizzas per week at a price of $20 each Suppose the owner

A local pizzeria sells 500 large pepperoni pizzas per week at a price of $20 each Suppose the owner of the pizzeria tells you that the price elasticity of demand for his pizza is -3, and he asks you for advice He wants to know two things First, how many pizzas will he sell if he cuts his price by 10%? Second, how will his revenue be affected?

 

If he cuts hiss price by 10%, his sales will increase to [ ? ] pizzas, and his total revenue will increase to $ [ ? ]

 

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Apr 24 2020 View more View Less

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