Use the graph for Yolanda's Frozen Yogurt Stand to answer the questions that follow. Use the midpoint formula to calculate the price elasticity of demand for D₁ between point A and point C and the price elasticity of demand for D₂ between point A and point B. Price elasticity of demand for D₁ = (Enter your response rounded to two decimal places. Be sure to include the minus sign.) Price elasticity of demand for D₂: (Enter your response rounded to two decimal places. Be sure to include the minus sign.) Which curve is more elastic? Suppose Yolanda is initially selling 200 cones per day at a price of $2.50 per cone. If she changes her price to $1.50 per cone and her demand curve is D₁, what will be the (Enter your response rounded to two decimal places and include a minus sign if necessary.) change in her revenue? $ What will be the change in her revenue if her demand (Enter your response rounded to two curve is D₂? $ decimal places and include a minus sign if necessary.) C Price (dollars per cone) 4.00- 3.75- 3.50- 3.25- 3.00- 2.75- 2.50- 2.25- 2.00- 1.75- 1.50- 1.25- 1.00- 0.75- 0.50- 0.25- 0.00- A D₂ C 200 250 350 Quantity (cones per day)

Use the graph for Yolanda's Frozen Yogurt Stand to answer the questions that follow. Use the midpoint formula to calculate the price elasticity of demand for D₁ between point A and point C and the price elasticity of demand for D₂ between point A and point B. Price elasticity of demand for D₁ = (Enter your response rounded to two decimal places. Be sure to include the minus sign.) Price elasticity of demand for D₂: (Enter your response rounded to two decimal places. Be sure to include the minus sign.) Which curve is more elastic? Suppose Yolanda is initially selling 200 cones per day at a price of $2.50 per cone. If she changes her price to $1.50 per cone and her demand curve is D₁, what will be the (Enter your response rounded to two decimal places and include a minus sign if necessary.) change in her revenue? $ What will be the change in her revenue if her demand (Enter your response rounded to two curve is D₂? $ decimal places and include a minus sign if necessary.) C Price (dollars per cone) 4.00- 3.75- 3.50- 3.25- 3.00- 2.75- 2.50- 2.25- 2.00- 1.75- 1.50- 1.25- 1.00- 0.75- 0.50- 0.25- 0.00- A D₂ C 200 250 350 Quantity (cones per day)

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 4.9P: (Other Elasticity Measures) Complete each of the following sentences: a. The income elasticity of...

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