The Local Bakery Makes Such Great Cinnamon Rolls That Consumers

question 162

Multiple Choice

The local bakery makes such great cinnamon rolls that consumers do not respond much at all to a change in the price.If the owner is only interested in increasing revenue,she should

• A)lower the price of the cinnamon rolls.
• B)leave the price of the cinnamon rolls unchanged.
• C)raise the price of the cinnamon rolls.
• D)reduce costs.

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Definitions:

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An annual financial statement presenting the government's proposed revenues and spending for the forthcoming fiscal year.

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The part of the economy that is run by individuals and companies for profit and is not controlled by the state.

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