Answer to Question #28592 in Microeconomics for ivy gomez

Question

1.this winter season, the price of an ice-cream cone fell by 0.10 cents $3.00 to try and boost sales. Ice-cream producers were happy to see that sales went from 220 to 236 units, despite the cold weather. what was the price elasticity of the product? Is this good elastic or inelastic.

2. due to labor strikes in the orange industry, the price of a box of oranges increase by $0.5 to $1.00 per box and the quantity demanded falls from 1000 pound to 400 boxes. calculate the midpoint elasticity of demand for oranges in this price range.
formula: (q2-q1)/(q2+q1)/2]/[(p2-p1)/(p2+p1)/2]