(Answered) Bettys bakery estimates that they can sell 400 cookies at

Economics

Betty's Bakery estimates that they can sell 400 cookies at $0.60(60 cents) a cookie and will be able to sell 500 cookies at if the price of a cookie drops to $0.50(50 cents). Calculate the elasticity of demand for Betty's cookies using the price-total revenue test and the midpoint formula. Based on your calculations, did Betty make a good decision in lowering the price of cookies? Why?

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