Question: Solve the problem with supporting computation. Question: Suppose that as the price of Y falls from $2.00 to $1.90, the quantity of Y demanded increases

Solve the problem with supporting computation. Question:

  1. Suppose that as the price of Y falls from $2.00 to $1.90, the quantity of Y demanded increases from 110 to 118. Find the price elasticity of demand.
  2. Indicate whether price elasticity of demand is elastic, inelastic, or unitary.
  3. Did the revenue increase or decrease?

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