When the price of bubble gum is $0.50, the quantity demanded is 400 packs per day. When the price falls to $0.40, the quantity demanded increases to 600. Given this information and using the midpoint method, you know that the elasticity of demand for bubble gum is

Question 21 options:

1.81, so this store should lower price to raise total revenue

1.81, so this store should raise price to raise total revenue

0.55, so this store should lower price to raise total revenue

0.55, so this store should raise price to raise total revenue