Draw a curve that shows the relationship between quantity and total revenue when the demand curve for umbrellas is linear. Label it TR$.$

Draw a point on the curve at which demand is elastic. Label it Elastic.

Draw a point on the curve at which demand is inelastic. Label it Inelastic.

Draw a point on the curve at which demand is unit elastic. Label it Unit Elastic.

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Part $1$

If demand is$$ elastic, what is the effect of a $1$ percent price cut on the quantity$$ sold?

If demand is$$ elastic, a $1$ percent price cut$\_\_\_\_\_\_\_$ the quantity sold by$\_\_\_\_\_\_\_.$

$$

A$.$

$$increases; less than $1$ percent

B$.$

$$increases; more than $1$ percent

C$.$

$$decreases; $1$ percent

D$.$

$$decreases; more than $1$ percent