89.9k views
0 votes
Jane owns a bakery where she sells blueberry muffins. At the start of the year, she raised the price from $3 to $4. Her total revenue for the year was more than the previous year. What does this tell us about the price elasticity of demand for Jane’s blueberry muffins going from a price of $3 to $4?

A. It’s elastic.
B. It’s inelastic.
C. It’s unit elastic.
D. We cannot infer anything about the price elasticity of demand from this information.
Please write the steps and answer clearly

User Karlitos
by
8.7k points

1 Answer

5 votes
A. Is the correct answer
User Mark Pelletier
by
7.7k points