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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?
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