Question

Franco's Pizzeria sells slices of pizza for $2.00. According to the market demand schedule and assuming ceteris paribus, what happens when Franco's raises the price to $2.50 a slice? (1 point)
* The quantity demanded per day stays the same.
* The quantity demanded falls from 100 slices a day to 50 a slice.
* The quantity demanded falls from 150 a day to 100 a day.
* The quantity demanded increases to 250 a day.

Answer 1

Due to the increase in the price of the pizza, it is conclusive that the demand will decrease. Assume that the amount he will earn will stay the same and it is the product of the number of pizza and the price, the choice that would satisfy this is the third choice.