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: 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?
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: 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?
Chapter1: Making Economics Decisions
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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. At a price of
$2.5 each, he sells 250. At a price of $2 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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faf983742-21da-405e-bd1c-d24c03031767%2Fa7821693-e248-4a70-a48f-3a4db34fc49f%2F4s3rxe_processed.png&w=3840&q=75)
Transcribed Image Text: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: 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?
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