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:

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.

Payment

The act of transferring money or something of value in exchange for goods or services.

Commercially Reasonable

A standard requiring actions that are typical or expected within a business context and in good faith.

Presentment

The act of formally presenting a document, such as a check or draft, to a party for acceptance or payment.