If a Donut Shop Runs a Special and Sells a Dozen

question 37

Multiple Choice

If a donut shop runs a special and sells a dozen donuts for $3.00, Tarik buys a dozen donuts each week. If donuts are not on special and the price is $6.00 per dozen, Tarik buys no donuts each week. Which of the following is true?

• A) Tarik's demand for donuts is inelastic.
• B) Tarik's utility from a dozen donuts is less than $3.00.
• C) The value of Tarik's utility from a dozen donuts is at least $3.00 and less than $6.00.
• D) Tarik's utility from a dozen donuts is greater than $6.00.

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Definitions:

Rapid

Occurring in a short time or at a fast pace, often used to describe movements, changes, or reactions.

Subsequently

Refers to events or actions that occur after a particular point in time, following something else in order.

Proactive Interference

The phenomenon where older memories interfere with the recall of newer memories.

Encoding Failure

A situation where information does not get stored in long-term memory due to insufficient encoding during the learning phase.