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Domino's Pizza
In 1999, Domino's Pizza, a corporate sponsor of the Washington Redskins (a football team) offered to reduce the price of its medium-size pizza by $1 for every touchdown scored by the Redskins during the previous week. Until that year, the Redskins weren't scoring many touchdowns. Much to the surprise of Domino's, in week one of 1999, the Redskins scored six touchdowns. As a result, the price of Domino's pizzas fell from $8 a pie to $2 a pie the following week. The quantity of pizzas demanded soared he following week from 1 pie an hour to 100 pies an hour. What was the price elasticity of demand for Domino's pizza?
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