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The Cheese Yogurt Factory reduced the price of its Popular Yummy Ice Cream from $2.25 to...

The Cheese Yogurt Factory reduced the price of its Popular Yummy Ice Cream from $2.25 to $1.75. As a result, the firm's daily sales of these ice creams increased from 1500 per day to 1800 per day.

A) Compute the price elasticity of demand on the ice creams.

B) Is the demand on ice cream elastic or inelastic?

C) What is your suggestion to Cheese yogurt Factory to increase the revenue?

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