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When Heavenly Cookies Prices Its Sugar Cookies at $1

Question 51

Multiple Choice

When Heavenly Cookies prices its sugar cookies at $1.00, they sell 75 cookies. They lowered the price to $0.50 and sold 200 cookies. Their total revenue because the price elasticity of demand for sugar cookies is .


A) rose; elastic
B) rose; inelastic
C) fell; elastic
D) fell; inelastic
E) stayed the same; unitary elastic

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