The Only Producer of Chocolate Bunnies in the World, Choco's

question 111

Multiple Choice

The only producer of chocolate bunnies in the world, Choco's Bunny Company, recently expanded its production capacity from 1,000 to 2,000 bunnies per day.If the price elasticity of demand for bunnies is 3.33, by how much will the company need to reduce its price to sell the additional 1,000 bunnies (using the midpoint method) ?

• A)2.5%
• B)25%
• C)125%
• D)20%

---

Definitions:

Epididymis

Elongated structure connected to the posterior surface of the testis, which consists of the head, body, and tail; site of storage and maturation of the spermatozoa.

Oocyte

Immature ovum.

"Window of Opportunity"

describes a period when unique circumstances allow for a particular action to be taken that may not be possible at another time.

Ovulation

Release of an ovum, or secondary oocyte, from the vesicular follicle.