Fill in the blanks:
a. The price elasticity of demand for a firm’s product is equal to 21.5 over the range of prices being considered by the firm’s manager. If the manager decreases the price of the product by 6 percent, the manager predicts the quantity demanded will_________ (increase, decrease) by_________ percent.
b. The price elasticity of demand for an industry’s demand curve is equal to 21.5 for the range of prices over which supply increases. If total industry output is expected to increase by 30 percent as a result of the supply increase, managers in this industry should expect the market price of the good to_________ (increase, decrease) by _________percent.