Use the following graph for Yolanda’s Frozen Yoghurt Stand to answer the questions that follow.a. Use the midpoint formula to calculate the price elasticity of demand for D1 between point A and point C, and the price elasticity of demand for D2 betweenpoint A and point B. Which demand curve is more elastic, D1 or D2? Brieflyexplain.b.Suppose Yolanda is initially selling 200 cones per day at a price of $3.00 per cone.If she reduces her price to $2.50 per cone and her demand curve is D1, what willbe the change in her revenue? What will be the change in her revenue if herdemand curve is D2?
