Elasticity : Does the fact that the price elasticity for food is inelastic violate the law of demand? Explain your answer.

Elasticity.

Please provide descriptive answers to the following questions.

1. A local pizzeria charges $10 for a pizza. The owner of the pizzeria wants to increase the company’s total revenue. A recent market research shows that the price elasticity of demand for his pizza is about 1.5. Should the pizzeria lower or raise the price? Explain your answer.

2. Does the fact that the price elasticity for food is inelastic violate the law of demand? Explain your answer.

3. Explain why the cross elasticity of demand for substitute goods is positive and the cross elasticity of demand for complements is negative.