Use the Following Scenario to Answer the Following Questions: Dairy

question 29

Multiple Choice

Use the following scenario to answer the following questions: Dairy Wishes,a local ice cream store,finds that it sells out of ice cream sandwiches at the current price of $1.It raises the price to increase its revenues and finds that no one buys ice cream sandwiches anymore.
-The demand for ice cream sandwiches is

• A) inelastic.
• B) elastic.
• C) perfectly inelastic.
• D) perfectly elastic.
• E) unitary elastic.

---

Definitions:

Client-Visits

The number of times clients or patients meet or consult with a service provider.

Occupancy Expenses

Costs associated with occupying a space, such as rent, utilities, and property maintenance.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, making it more useful for planning and controlling costs.

Client-Visits

The occurrence of clients or customers physically visiting a business premise for purposes such as consultation, purchase, or review of services.