A local Krispy Kreme doughnut shop reduced its prices by 10 percent, and as a result, the quantity of doughnuts sold increased by 25 percent. Over this range, the absolute value of the price elasticity of demand was
A) 0.4.
B) 1.
C) 2.
D) 2.5

Question

A local Krispy Kreme doughnut shop reduced its prices by 10 percent, and as a result, the quantity of doughnuts sold increased by 25 percent. Over this range, the absolute value of the price elasticity of demand was
A) 0.4.
B) 1.
C) 2.
D) 2.5

Quizplus · Accepted Answer

The Answer of A local Krispy Kreme doughnut shop reduced its prices by 10 percent, and as a result, the quantity of doughnuts sold increased by 25 percent. Over this range, the absolute value of the price elasticity of demand was
A) 0.4.
B) 1.
C) 2.
D) 2.5

A Local Krispy Kreme Doughnut Shop Reduced Its Prices by 10