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Question
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
Answer
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