A Local Krispy Kreme Doughnut Shop Reduced Its Prices by 10

question 130

Multiple Choice

A local Krispy Kreme doughnut shop reduced its prices by 10 percent, and as a result, the quantity of doughnuts sold increased by 25 percent. Over this range, the absolute value of the price elasticity of demand was

• A) 0.4.
• B) 1.
• C) 2.
• D) 2.5

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Definitions:

Redness

Also known as erythema, it is a common sign of inflammation or infection, indicating increased blood flow to the affected area.

Itching

A sensation that causes the desire or reflex to scratch.

Dry Scales

Dry scales refer to flaky patches of skin that may result from dryness, various skin conditions, or diseases.

Dermis

The substantial living tissue layer under the epidermis that constitutes the actual skin, including sweat glands, hair follicles, and additional elements.