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Q. Use the following graph for yolanda's frozen yogurt stand to answer the questions that follows.
A. To compute the price elasticity of demand use the midpoint for d1 among point a and point c, and the price elasticity of demand for d2 between point a and b. Explain among d1 or d2 which demand curve is more elastic? Briefly explain.
B. Suppose yolanda is initially selling 200 cones per day @ a price of $3.00 per cone. If she cuts her price to $2.50 per cone and her demand curve is d1, what will be the change in her revenue? If her demand curve is d2 what will be the change in her revenue?
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