What advice to bi given if demand for lemonade is elastic


Your younger sister needs $50 to buy a new bike. She has opened a lemonade stand to make the money she needs. Your mother is paying for all of the ingredients. She currently is charging 25 cents per cup, but she wants to adjust her price to earn the $50 faster. If you know that the demand for lemonade is elastic, what is your advice to her?

a) Leave the price at 25 cents and be patient.

b) Raise the price to increase total revenue.

c) Lower the price to increase total revenue.

d) There isn't enough information given to answer this question.

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Microeconomics: What advice to bi given if demand for lemonade is elastic
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