If the owner of an ice- cream van charges £1 for an ice- cream cone, his total revenue is £400 a day. If he lowers the price to 75p, his total revenue is £350 a day. The demand for ice- cream is
A) inelastic.
B) elastic.
C) unitarily elastic.
D) neither elastic nor inelastic because this situation violates the law of demand.
Correct Answer:
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