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.
A
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When a central bank aggressively tries to contain inflation via contractionary monetary policy, which condition is most likely to occur?
A. Inflation B. Disinflation C. Deflation D. Underinflation
The rate of unemployment is calculated as the number of
A. people in the civilian labor force divided by the number of unemployed. B. unemployed workers divided by the number of employed workers. C. employed workers divided by the number of unemployed workers. D. unemployed divided by the number of people in the civilian labor force.
"Exotic" mortgages became popular in part, because they allow someone of
A. modest means to build more equity in their home than a traditional mortgage would allow. B. means to get into a home they would easily have been able to afford. C. modest means to build their credit score by proving they could make challenging payments. D. modest means to get into a home they might otherwise not have been able to afford.