Question: Blue Light Industries (BLI) makes a visor with a flip-down blue light screen. Price elasticity of demand for the hat at its current price is

Blue Light Industries (BLI) makes a visor with a flip-down blue light screen. Price elasticity of demand for the hat at its current price is -2.7. The visor's variable cost is set to go down, and BLI is responding by reducing the hat's selling price by -4.2%. For the coming changes in price and variable cost, BLI calculates percent profit breakeven at +13.5%, Will BLI's total profits on the hat GO UP OR GO DOWN after the changes? Please explain how you know.

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