Given the price elasticities and price changes for the following products A–E in the table below, show how much the quantity will change (indicating an increase or decrease) and what effect this will have on total revenue (indicating an increase or decrease). Round your answers to 1 decimal place.

Product	Price elasticity	% ∆ Price	%∆ Quantity	∆ Total revenue
A	0.6	increase by 9%	(Click to select) decrease increase by %	(Click to select) increase decrease constant
B	1.3	decrease by 6%	(Click to select) increase decrease by %	(Click to select) increase decrease constant
C	0.3	decrease by 12%	(Click to select) decrease increase by %	(Click to select) increase decrease constant
D	1.0	increase by 4%	(Click to select) decrease increase by %	(Click to select) increase decrease constant
E	3.3	increase by 5%	(Click to select) increase decrease by %	(Click to select) increase decrease constant

Answer rating: 100% (QA)

Price elasticity of demand change in quantity demanded change in price Note Price elasticty of demand is repsented in negative sign because there is an inverse relationship between quantity demanded and price So if price elasticity is given as 06 Then take it as 06 Demand is elastic if absolute value of price elasticity of demand is less than 1 Demand is inelastis if absolute value of price elasticity of demand is more than 1 Demand is unitary elastic if absolute value of price elasticity of demand is equal to 1 Relationship between pirce and total revenue If demand is elastic then there is an negative realtionship between price and total revenue If demand is inelastic then there is a ... View the full answer