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:

Fasting Glucose

Measurement of blood sugar levels after abstaining from food and drink (except water) for at least 8 hours, used in diagnosing diabetes.

CVD

Cardiovascular Disease, a class of diseases that involve the heart or blood vessels.

Relative Risk

A measure used in epidemiology to compare the risk of a certain event occurring in one group with the risk of it occurring in another group.

Sunscreens

Products applied to the skin to protect it from the harmful effects of UV radiation.