Multiple Choice
Krispy Kreme raises the price of its donuts. The price elasticity of demand for Krispy Kreme donuts equals 5.0. What happens to Krispy Kremes' total revenue?
A) It becomes negative.
B) It increases.
C) Nothing.
D) It decreases.
E) It might change, but more information is needed to determine if it increases, decreases or does not change.
Correct Answer:
Verified
Correct Answer:
Verified
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