Danny “dimes” donahue is a neighborhood’s 9-year-old entrepreneur. his most recent venture is selling homemade brownies that he bakes himself. at a price of $2.5 each, he sells 250. at a price of $2 each, he sells 300. instructions: round your answer to 1 decimal place. a. what is the elasticity of demand? . b. is demand elastic or inelastic over this price range? . c. if demand had the same elasticity for a price decline from $2 to $1.5 as it does for the decline from $2.5 to $2, would cutting the price from $2 to $1.5 increase or decrease danny’s total revenue? .
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Danny “dimes” donahue is a neighborhood’s 9-year-old entrepreneur. his most recent venture is sellin...
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