A shop produces and sells 100 luxury hampers a day at $60 each. When it raises the price to $66 it decreased its sale to 80 hampers a day. Which of the following statements is correct?

1. The elasticity of demand is approximately 1.
2. The shop's revenues would stay the same.
3. The demand for hampers is relatively elastic (.
4. The shop should raise its price further in order to increase its sales revenues.