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One football season Domino's Pizza, a corporate sponsor of the Washington Redskins (a football team), offered to reduce the price of its $8 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 one week in 1999, the Redskins scored 3 touchdowns. (Maybe they like pizza.)
Domino's pizzas were selling for $5 a pie! The quantity of pizzas demanded soared the following week from 40 pies an hour to 80 pies an hour. What was price elasticity of demand for Domino's pizza?
After completing the Uruguay GATT round, S-land decided to conform to WTO. They implemented a tariff-quota. That is, a tariff, t, was defined as the exact difference between the domestic pric, Pd, and the world price, Pw, immediately before implement..
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