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Danny Dimes Donahue is a neighborhood's 9-year-old entrepreneur His most recent venture is selling homemade brownies that he bakes himself

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 each, he sells 100. At a price of $1.5 each, he sells 300. Instructions: Use the midpoint method and round your answer to 2 decimal places. Do not include a minus sign. a. What is the elasticity of demand? b. Is demand elastic or inelastic over this price range? (Click to select) C. If demand had the same elasticity for a price decline from $1.5 to $1 as it does for the decline from $2 to $1.5, would cutting the price from $1.5 to $1 increase or decrease Danny's total revenue? (Click to select)

Apr 01 2020 View more View Less

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