hen the price of a pizza falls from 9 10 7 and other things

hen the price of a pizza falls from $9 10 $7 and other things remain the same the quantity demanded of pizza increases from 100 to 200 an hour 2. the quantty demanded of burgers decreases from 200 to 100 an hour, and 3 the quantity demanded of cola increases from 150 to 250 cans an hour With knowedge of the cross elasticity of demand for cola with respect to pizza and the cross elasticity of demand for burgers with respect to pizza, the owner of a business that sells cola and pizza O A. can caculate the efect of a change in a price of a pizza on his compesition that sell burger OB, can deermine the price of apozathat maximizes his revenue bom cola and puna O C. can calculase the quantity of cola supplied O D. can calculane the quantiy of burgers supplied OE. Both A and B are correct cick to select your a ctrl

Solution

Answer is E. Both A and B.

Explanation: By computing the cross elasticity of Pizza and cola and cross elasticity of pizza and burger, the producer cash estimate the price which can maximize its revenue and also determine the effect of price change in Pizza on the demand of burger.