1.The Sweet Success Bakery sells 500 cakes at a price of $10 per cake. Its total economic costs for producing 500 cakes are $500. The Sweet Success Bakery's economic profits are

A.$100.

B.$3,500.

C.$4,500.

D.indeterminate from this information.

2.The Cakery Bakery sells 200 muffins at a price of $2 per muffin. Its explicit costs for producing 200 muffins are $350. The Cakery Bakerys economic profits are

A.$35.

B.$50.

C.$400.

D.indeterminate from this information

Question 2. (2 marks)

Suppose that business travellers and vacationers have the following demand for airline tickets from Chicago to Miami:

2.1

As the price of tickets rises from $200 to $250, what is the price elasticity of demand for

(i) business travellers and (ii) vacationers?

2.2

As the price of tickets rises from $250 to $300, what is the price elasticity of demand for

(i) business travellers and (ii) vacationers