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Effectus [21]
3 years ago
8

Pizza Hut lowers the price of its pizza. The price elasticity of demand for Pizza Hut pizza equals 0.3. What happens to the Pizz

a Hut's total revenue? It decreases. It might change, but more information is needed to determine if it increases, decreases, or does not change. It increases ___.
Business
2 answers:
vlabodo [156]3 years ago
5 0

Answer:

<u>It Decreases</u>

Explanation:

Pizza Hut lowers the price of its pizza. The price elasticity of demand for Pizza Hut pizza equals 0.3. <u>The total revenue of The Pizza Hut will decrease.</u>

The elasticity of demand is an economic principle that measures the extent of consumer response to changes in quantity demanded as a result of a price change, as long as all other factors are equal.

An elastic demand or elastic supply is one in which the elasticity is greater than one, indicating a high responsiveness to changes in price. An inelastic demand or inelastic supply is one in which elasticity is less than one, indicating low responsiveness to price changes.

Ilia_Sergeevich [38]3 years ago
4 0

Answer:

It decreases. 

Explanation:

If the absolute value of price elasticity of demand is less than one, it means that demand is inelastic.

Demand is inelastic if a change in price has little or no effect on quantity demanded.

If the pizza hut reduces its price, there would be little or no change in quantity demanded. As a result, revenue would fall.

If demand were elastic, a reduction in price would lead to an increase in the quantity of pizza demanded and revenue would increase.

Demand is elastic if a small change in price has a greater effect on the quantity demanded.

I hope my answer helps you

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Answer:

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This is an important metric that shows how effective marketing efforts are, it also indicates wether more effort should be put into advertising to increase the reach.

Reach is calculated by dividing impressions by frequency.

Impression is the total number of times an advert is displayed while frequency is the number of times it is viewed.

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Answer:

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Explanation:

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3 years ago
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Answer:

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6 0
3 years ago
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Answer:

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Explanation:

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