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Author Question: A local Krispy Kreme doughnut shop reduced the price of its doughnuts from 4 per dozen to 3.50 per ... (Read 85 times)

naturalchemist

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on: Jun 30, 2018
A local Krispy Kreme doughnut shop reduced the price of its doughnuts from 4 per dozen to 3.50 per dozen, and as a result, the daily sales increased from 300 to 400 dozen. This indicates that the price elasticity of demand for the doughnuts was:
 a. elastic.
  b. inelastic.
  c. of unitary elasticity.
  d. indeterminate; more information is needed to determine the price elasticity of demand.

Question 2

If the quantity demanded increases by 20 percent in response to a 10 percent decrease in price, demand is classified as:
 a. unstable.
  b. relatively inelastic.
  c. relatively elastic.
  d. of unitary elasticity.


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Hdosisshsbshs

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Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

c


naturalchemist

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Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

tkempin

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Reply 3 on: Yesterday
:D TYSM

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