A Local Krispy Kreme Doughnut Shop Reduced the Price of Its

question 188

Multiple Choice

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.

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Definitions:

Oxygen

A chemical element with symbol O and atomic number 8, essential for most life forms on Earth as a component of air and water, and used in cellular respiration.

Safranin

A bright red dye used in histology and cytology to stain cell nuclei red, often as a counterstain in various staining protocols, including Gram staining.

Decolorizer

A chemical agent used to remove color in staining or laboratory procedures.

Aerobic

Aerobic refers to processes or activities that require the presence of oxygen, such as aerobic exercise which improves cardiovascular conditioning.