One common Christmas tradition in many households is the Claxton fruitcake.The fruitcake bakery in Claxton,Georgia,makes about 6 million pounds of fruitcake annually and has $12 million in sales.One fruitcake batch weighs 375 pounds.About 70 percent of that weight is fruits and nuts.A single batch is divided into 34 loaf pans that hold 11 pounds each.Loaves are cooked for 100 minutes at 375 degrees.The bakery can cook 6,000 pounds at a time.During the baking season (August-December),the bakery uses a tractor-trailer load of raisins each day.The suggested retail price of a one-pound Claxton fruitcake is $3.69.
-Refer to Claxton Fruitcakes.Because demand for raisins to bake into the fruitcakes does not change on the basis of the price fluctuations of dried fruits,Claxton's demand for raisins is an example of what type of demand?

Question

Quizplus · Accepted Answer

Claxton's demand for raisins is inelastic because it does not change in response to the price fluctuations of dried fruits. This means that even if the price of raisins increases, Claxton will continue to purchase the same amount, as they need a certain amount of raisins to make their fruitcakes, and cannot easily switch to a substitute.

One Common Christmas Tradition in Many Households Is the Claxton