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18 August, 18:02

Peter's Pizzeria sells both pizzas and soda. It wants to increase the sales of its pizzas. Assuming that the pizza and the sodas are complements, which of these strategies can it employ?

a. Increase the price of the soda.

b. Decrease the price of the soda.

c. Increase the quality of the pizza

d. Both B and C

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Answers (1)
  1. 18 August, 19:23
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    b. Decrease the price of the soda.

    c. Increase the quality of the pizza

    Explanation:

    There are two goods under the demand's cross-price elasticity, i. e. substitute goods and complementary products.

    The substitute goods demonstrate the positive relationship between good price B and good demand A. That means if good B prices go down. The demand for good A then decreases

    Whereas it indicates a negative relation between the price of good B and the demand of good A in the case of complimentary products. That means if good B prices go down. The demand for good A then increases
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Home » Business » Peter's Pizzeria sells both pizzas and soda. It wants to increase the sales of its pizzas. Assuming that the pizza and the sodas are complements, which of these strategies can it employ? a. Increase the price of the soda. b.
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