Aiyanna`s pizzeria faces a linear downward sloping demand curve and is charging a very high price per pizza initially. they are doing very little business. aiyanna decides to lower pizza prices 5% per week for an indefinite period of time. we can expect each successive week that:
a. revenues will continue to rise
b. demand will become increasingly price inelastic
c. demand will become increasingly price elastic
d. price elasticity of demand will remain constant

Garrett is an executive vice president at samm hardware. he researches a proposal by a larger company, maximum hardware, to combine the two companies. by analyzing past performance, conducting focus groups, and interviewing maximum employees, garrett concludes that maximum has poor profit margins, sells shoddy merchandise, and treats customers poorly. what actions should garrett and samm hardware take? a. turn down the acquisition offer and prepare to resist a hostile takeover. b. attempt a friendly merger and use managerial hubris to improve results at maximum. c. welcome the acquisition and use knowledge transfer to impart sam hardware's management practices. d. do nothing; the two companies cannot combine without samm hardware's explicit consent.