4. You run a small business and would like to predict what will happen to the quantity demanded for your product if you raise your price. While you do not know the exact demand curve for your product, you do know that in the first year you charged a price of $45 and sold 1,200 units, and in the second year, you charged a price of $40 and sold 1,400 units.

A. If you plan to raise your price by 10% what would be a reasonable estimate of what might happen to quantity demanded in percentage terms?

B. If you raise your price by 10%, will revenues increase or decrease?