What effect would a rule stating that university students must live in university dormitories have on the price elasticity of demand for dormitory space? How might this rule affect room rates?

Sony is considering a $10$ percent price reduction on its HD televisions. If the price elasticity coefficient for the sets in this price range is $0\mathrm{.}75,$ then the price cut will cause

Multiple Choice

sales quantity to increase and revenues to also increase.

sales quantity to increase but revenues to decrease.

sales quantity to decrease and revenues to also decrease.

sales quantity to decrease but revenues to increase.