Question: I am just needing clarification (step by step, please) on how to arrive at answers (stated) for the following question. You sell car insurance to

I am just needing clarification (step by step, please) on how to arrive at answers (stated) for the following question.

You sell car insurance to low-income consumers. You have the cheapest rates in Texasjust $50 per monthand you have 100,000 identical customers. You estimate that the price elasticity of demand for your insurance is - 0.1.

____1%___ a. If you raise your prices by 10% ($5), what percent of your customers will you lose?

___1,000__ b. How many customers will you lose?

8.9%c. Your total monthly revenue will change by what percent? (Include + or - sign.)

_+$445,000_ d. Your total monthly revenue will change by what $ amount? (Include + or - sign.)

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