This topic contains a solution. Click here to go to the answer

Author Question: A local Krispy Kreme doughnut shop reduced the price of its doughnuts from 4 per dozen to 3.50 per ... (Read 53 times)

naturalchemist

  • Hero Member
  • *****
  • Posts: 542
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.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Hdosisshsbshs

  • Sr. Member
  • ****
  • Posts: 315
Answer to Question 1

a

Answer to Question 2

c




naturalchemist

  • Member
  • Posts: 542
Reply 2 on: Jun 30, 2018
Gracias!


FergA

  • Member
  • Posts: 352
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

On average, the stomach produces 2 L of hydrochloric acid per day.

Did you know?

The average office desk has 400 times more bacteria on it than a toilet.

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

For a complete list of videos, visit our video library