Assume that the Morgantown Pizza is the exclusive destination for pizzas for WVU students. In other words, assume that the Morgantown Pizza is the only pizza place for WVU students. At current market condition, the price elasticity of demand is estimated to be 0.9. To increase revenue, the Morgantown Pizza should increase the price and attract less customers. cut the price and attract more customers.
Assume that the Morgantown Pizza is the exclusive destination for pizzas for WVU students. In other words, assume that the Morgantown Pizza is the only pizza place for WVU students. At current market condition, the
increase the price and attract less customers.
cut the price and attract more customers.
Price elasticity of demand is a measure of the change in quantity demanded of a good or service to change in its price. It measures the percentage change in the quantity demanded that is a result of the percentage change in price. It can be affected by a variety of factors such as substitute availability, the necessity of the good or service, income portion, and so on.
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