A Chinese restaurant in Inglewood, has decided to increase the price of its Sunday brunch from $23 to $25. Following this price increase, the number of reservations on a typical Sunday dropped from 50 to 45. Which statement is correct?

a.

The total costs faced will increase for sure

b.

Maximizing revenues as the demand is unit-elastic at the current level

c.

The price increase leads to an increase in total revenues as the demand is elastic at the current level

d.

The price increase leads to a decrease in total revenues as the demand is elastic at the current level

e.

The price increase has a positive impact on profits as the demand is inelastic at the current level