Demand for envelopes elastic or inelastic

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Yesterday, the price of envelopes was $3 a box, and Julie was willing to buy 10 boxes. Today, the price has gone up to $3.75 a box, and Julie is now willing to buy only 8 boxes. Is Julie's demand for envelopes elastic or inelastic? What is Julie's elasticity of demand, using the midpoint formula? For higher revenue, would you recommend higher or lower price to the seller?

Reference no: EM13895995

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