3. Suppose you work for a local car parts supplier, and you're looking at ways to increase revenue. You remember from your economics course, that people respond to price changes. You decide to test this theory. Assume, that as the price of an alternator falls from $40.00 to $38.00 the quantity of Y demanded increases from 110 to 118. a. Then the coefficient of price elasticity of demand is: b. If you want to increase revenue, you should: 4. You are helping a friend that owns a local store. Their costs are per unit, so the only way they can maximize profits are by increasing revenue. Therefore, you would like to help identify the price that will maximize revenues. Below is data from a previous period. Complete the chart. (For the TR Test, consider that prices are increasing.) Price Quantity Ed Characterization Effect on TR* $10 100 $9 104 $8 112 $7 127 $6 165 $5 231