Initial values are: PM = $20000 Pc =$1.00 I= $15000 A = $10000 This function is: QT = 200 -.01PT +.005PM-10Pc +.01I +.003A 1.(a). Use the above to calculate the arc price elasticity of demand between PT = $20000 decreasing to Pr = $10000. The arc elasticity formula is: E, = 4Q PitP_ AP Q1+Q2 (b). Judging from the computation in (la), do you expect the revenue resulting from the price decrease to $10000 to increase, remain the same, or decrease relative to the revenue at the price of $20000? (Hint: see the table on page 65 of Truett). Explain your choice