If a Krispy Kreme Doughnut Shop near Campus Increases Its

question 133

Multiple Choice

If a Krispy Kreme doughnut shop near campus increases its prices by 5 percent, but revenues from its sales are unchanged, the price elasticity of demand for the services offered by the doughnut shop must be

• A) elastic.
• B) of unitary elasticity.
• C) inelastic.
• D) equal to 0.5.

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Definitions:

Impulsive

Acting on instinct or without forethought, often characterized by a lack of consideration for the consequences.

Unpredictable

Referring to something that cannot be predicted, forecasted, or expected with certainty.

Interpersonal Relationships

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