# Question: for each of the following cases what is the expected...

###### Question details

FOR EACH OF THE FOLLOWING CASES, WHAT IS THE EXPECTED IMPACT ON THE TOTAL REVENUE OF THE FIRM? EXPLAIN YOU REASONING.

A. PRICE ELASTICITY OF DEMAND IS KNOWN TO BE -0.5, AND THE FIRM RAISES PRICE BY 10 PERCENT.

B. PRICE ELASTICITY OF DEMAND IS KNOWN TO BE -2.5, AND THE FIRM LOWERS PRICE BY 5 PERCENT.

C. PRICE ELASTICITY OF DEMAND IS KNOWN TO BE -1.0, AND THE FIRM RAISES PRICE BY 1 PERCENT.