Danny Dimes Donahue is a neighbourhood's 9-year old entrepreneur, His most recent venture is selling homemade and brownies that he bakes himself. At a price of $1.50 each, he sells 100. At a price of $100 each, he sells 300.
Is demand elastic or Inelastic over this price range? if demand had the same elasticity for a price decline from $100 to $0.50 as' it does for the decline from $1.50 to $1.00. would cutting the price from $1.00 to $0.50 increase or decrease Danny's total revenue?