A pizza restaurant raises the price of their pizza by 20%. As a result, they witness a 10% decrease in the quantity demand of their pizza. What is the price elasticity of demand for this pizza restaurant? -10 -.25 O -2 O -0 5

A pizza restaurant raises the price of their pizza by 20%. As a result, they witness a 10% decrease in the quantity demand of their pizza. What is the price elasticity of demand for this pizza restaurant? -10 -.25 O -2 O -0 5

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 1QR

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Question

A pizza restaurant raises the price of their pizza by 20%. As a result, they witness a 10%
decrease in the quantity demand of their pizza. What is the price elasticity of demand
for this pizza restaurant?
O-10
-.25
O -2
O -0.5

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