Two Donut Chains in Your Town Are Battling for Customers

question 113

Multiple Choice

Two donut chains in your town are battling for customers. The manager of the Real Yum Donut Shop lowered donut prices. As a result, customers:

• A)​increase the quantity demanded of Real Yum donuts.
• B)​decrease the quantity demanded of Real Yum donuts.
• C)​buy the same quantity of Real Yum donuts as before the price change.
• D)​decrease their demand for Real Yum donuts.

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Definitions:

Individual

Pertaining to or characteristic of a single, particular person or thing as opposed to a group.

Mining Partner

A member of a partnership formed for the purpose of mining activities, sharing in the profits and liabilities of the venture.

Transferable

Capable of being passed on or conveyed from one person or entity to another.

Partnership Capital

When a partnership or limited liability partnership is formed, partners contribute cash or other property to the partnership.