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 $1.50 each, he sells 100. At a price of $1.00 each, he sells 300. a. Is demand elastic or inelastic over this price range? b. If demand had the same elasticity for a price decline from $1.00 to $0.50 as it does for the decline from $1.50 to $1.00, would cutting the price from $1.00 to $0.50 increase or decrease Danny’s total revenue?

A. Price Elasticity of Demand = 6 ; Elastic Demand

B. Price decline [$1.00 to $0.50] will increase Total Revenue.

Explanation:

Price     Quantity

$1.5         100

$1            300  

A. Price elasticity = %change in demand / %change in price

= ΔQ/ΔP x P/Q

200/0.5 X 1.5/100 = 400 x 0.015

Ped = 6 . Demand is highly Elastic (>1), implying demand responds relatively more to price change.

B. Demand is Elastic (>1), implying %change in demand > %change in price. Price & Total Revenue are inversely related, price increase reduces total revenue & price decrease increases total revenue. So, in such case - price fall will increase Total Revenue

by knowing conditionality

explanation:

if it is for a job, then you should learn everything you can about the job, like what does it involve, what qualification is required and how you are the right person for that job. dress appropriately for the interview. get plenty of rest the night before. good luck!