Final answer:
Without specific pricing details from Carols, Micheals, and Raphaels Pizzeria, it's not possible to determine which has the lowest cost per pizza. Factors such as quality, customer preferences, and reactions to price changes should also be considered when evaluating cost-effectiveness.
Step-by-step explanation:
To determine which business has the lowest cost per pizza, one must compare the prices of the small pizzas from Carols Pizzeria, Micheals Pizzeria, and Raphaels Pizzeria. Unfortunately, the detailed price information for these pizzerias was not provided, which is crucial to calculate the cost per pizza and make an accurate comparison. When deciding on the best option for pizza, one might also consider factors such as quantity, quality, and customer preferences alongside the cost.
If such a situation were to occur in real life, where the price of a product like pizza increases due to external factors like a rise in minimum wage, consumer reaction could vary. The concept of price elasticity, as demonstrated in the given scenario with Pete's Pizza, indicates that if pizza prices increase significantly, consumers might opt for substitutes like tacos from Jose's Fiesta if they are more economically attractive. Thus, a business has the lowest cost per pizza if it offers the best value without compromising on other preferred attributes of the product.