A price tag states that an item’s MRSP is $100 but that its markdown is $40. This is an effective sales strategy because... O. a. discounts anchor buyers to the lowest price, so they are willing to pay more. O. b. the buyer is anchored to the higher price, so the lower price feels like a good deal. O. c. a higher price is a reference point that is never considered again. O. d. retailers know that consumers do not think about costs relatively.

Chloe is a chef who runs a niche food delivery business in a competitive industry. Chloe specializes in making monster calzones. Chloe sells 20 monster calzones per month. Her monthly total revenue is $5,000. The marginal cost of making a monster calzone is $300. In order to maximize profits, Chloe should A) make more than 20 calzones per month. B) make fewer than 20 calzones per month. C) continue to make 20 calzones per month. D) We do not have enough information with which to answer the question.

The answer displated chopped and cut, but i think i gathered it.   Follow up questions Determine the revenue at a price of $25 Which price will yield a higher revenue?  $28 or $40?

Take care of plagiarism.   1.A 10% increase in price that leads to a 12% decrease in the amount purchased indicates a price elasticity of more than 1 (in absolute value). True False   2. A 10% increase in price that leads to a 2% decrease in total expenditures (or total revenue) indicates a price elasticity of more than 1 (in absolute value). True False   3. If the percentage change in price is less than the resultant percentage change in quantity demanded, demand is__________ .(elastic/inelastic/unit elastic)