The owner of a local hot dog stand has estimated that if he lowers the price of hot dogs from $2.00 to $1.50, he will increase sales from 400 to 500 hot dogs per day. Using the midpoint formula, the...

 The owner of a local hot dog stand has estimated that if he lowers the price of hot dogs from $2.00 to $1.50, he will increase sales from 400 to 500 hot dogs per day. Using the midpoint formula, the demand for hot dogs is ___________.

1. A) elastic.


2. B) inelastic.


3. C) unit elastic.


4. D) perfectly elastic.

   At a price of $20, a store can sell 24 picture frames a day. At a price of $18 the store can sell 33 picture frames a day. Since total revenue ________ by the price decrease, demand must be ________.

1. A) is increased; elastic


2. B) is increased; inelastic


3. C) is increased; unit elastic


4. D) is decreased; elastic