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Tom's pizza sells for $ 5.00 ea and serves an average of 425 customers per week. During a recent sale, Tom lowered the price to $ 4.00 per ea. Sales increased to 500 customers during the week of the sale.
A. Calculate Tom's price elasticity of demand
B. Tom is considering lowering his permanent price to $ 4.50 ea to increase revenue, how many pizzas is Tom likely to sale?
C. Would you advise him to lower the price?
what do we mean by The narrowness of definition of the commodity.
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