Assume the following weekly demand schedule for Sunshine DVD Rentals in Cloverdale.

a. When Sunshine DVD Rentals lowers their rental price from $4 to $3, what happens to its total revenue?
b. Between a price of $4 and a price of $3, is the demand for Sunshine DVD Rentals in Cloverdale elastic or inelastic?
c. Between a price of $2 and a price of $1, is the demand for Sunshine DVD Rentals in Cloverdale elastic orinelastic?

Transcribed Image Text:

$5 4 2)__ ㄱ--ㄒㄧㄧ 0 50 100 150 200 250 Quantity of DVD (per week)