The local pizza restaurant makes such great bread sticks that consumers do not respond much to a change in the price.If the owner is only interested in increasing revenue, he should:
A)lower the price of the bread sticks
B)raise the price of the bread sticks
C)leave the price of the bread sticks alone
D)reduce costs

Question

Quizplus · Accepted Answer

Since consumers do not respond much to a change in the price (inelastic demand), raising the price of the bread sticks will increase revenue because the decrease in quantity sold will be proportionally less than the increase in price.

The Local Pizza Restaurant Makes Such Great Bread Sticks That