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 48 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
YES! Correct, THANKS for helping me on my review


epscape

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

For a complete list of videos, visit our video library