In a discussion with your friend, LeeAnna, you mentioned you have studied Price
Elasticity of Demand (PED) as well as the various costs that impact production.
LeeAnna, who happens to own a Pizza store is worried about the declining
profitability of her store. She needs your advice on what she should do to
increase her profit.
Provide good economic advice to LeeAnna, using the concepts you have learned
from your chapters 1 - 6 (especially paying close attention to PED and
production costs). In your advice, put into consideration the nature of her
competition, what variables impact the profit of an organization, and which of
these variable(s) can the business owner control to increase profit? How can the
PED of a product, in this case, pizza, impact how much price the owner of the
store can change?
