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.
Correct Answer:
Verified
Correct Answer:
Verified
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