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 owners raised the price because they believed that the demand for ice cream sandwiches is
A) inelastic.
B) elastic.
C) relatively price sensitive.
D) perfectly elastic.
E) unitary elastic.
Correct Answer:
Verified
Correct Answer:
Verified
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