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Pizza at jonnys(z) is expensive these days; A pizza costs $25, and so you usually choose to purchase 2 pizzas per week. This week, however,
Pizza at jonnys(z) is expensive these days; A pizza costs $25, and so you usually choose to purchase 2 pizzas per week. This week, however, Jonnys has a sale. They lower the price to $21 per pizza. You respond by purchasing 4 pizzas. (a) What is your price elasticity of demand for pizza (E z,pz )? (b) Interpret this elasticity (in other words, explain exactly what the magnitude of E z,pz means.)
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