suppose Als pizza curretly faces a linear demand curve and ischargin a very high

Question

suppose Als pizza curretly faces a linear demand curve and ischargin a very high price per pizza and doinglittle business. Al now decides to lower prices by 5% per week for an indefinateperiod of time. We can expect that each successiveweek, a. demand will become more price elastic b. price elasticity of demand will not change as price islowered c.demand will become less price elastic d. the elasticity of supply will increase suppose Als pizza curretly faces a linear demand curve and ischargin a very high price per pizza and doinglittle business. Al now decides to lower prices by 5% per week for an indefinateperiod of time. We can expect that each successiveweek, a. demand will become more price elastic b. price elasticity of demand will not change as price islowered c.demand will become less price elastic d. the elasticity of supply will increase

Explanation / Answer

c. demand will become more price elastic.

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