Asked by
jhamaela marco
on Dec 11, 2024
Verified
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.
Price Elasticity of Demand
Determining how a change in a product's price affects the demand for that product.
Krispy Kreme Doughnut
A brand known for its signature glazed doughnuts and other sweet treats, operating worldwide.
Daily Sales
The total volume or value of products and services sold within a single business day.
- Grasp the fundamentals of price elasticity of demand and the procedures for its mathematical derivation.
- Characterize the distinctions among elastic, inelastic, and unit elasticities of demand.
Verified Answer
MR
Learning Objectives
- Grasp the fundamentals of price elasticity of demand and the procedures for its mathematical derivation.
- Characterize the distinctions among elastic, inelastic, and unit elasticities of demand.