One common Christmas tradition in many households is the Claxton fruitcake.The fruitcake bakery makes about 2.7 million kilograms of fruitcake annually and has $12 million in sales.One fruitcake batch weighs 170 kilograms.About 70 percent of that weight is fruits and nuts.A single batch is divided into 34 loaf pans that hold 5 kilograms each.Loaves are cooked for 100 minutes at 190 degrees Celsius.The bakery can cook 2700 kilograms 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,what is Claxton's demand for raisins?

Question

Quizplus · Accepted Answer

The demand for raisins used in Claxton fruitcakes is inelastic because it does not change with fluctuations in the price of dried fruits. This indicates that consumers of Claxton fruitcakes are not very sensitive to changes in the price of the fruitcakes, and the demand for the product remains relatively stable even if the price of raisins used in the recipe increases.

One Common Christmas Tradition in Many Households Is the Claxton