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When Heavenly Cookies Prices Its Sugar Cookies at $1

Question 79

Multiple Choice

When Heavenly Cookies prices its sugar cookies at $1.00,it sells 75 cookies.It lowers the price to $0.50 and sells 200 cookies.Its 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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