Each scenario gives some information about price elasticity of demand. For each, calculate the missing data, and determine if the price change under consideration will increase, decrease, or not change the firm's total revenue.

Honest Abe's Used Cars estimates the price elasticity of demand for their cars to be 2.6. Last month, Abe tried a new marketing scheme which decreased the number of cars sold by 67%. For the following numerical answers, please round your answer to one decimal.

Abe must have:

Increased or Decreased

his prices by: _______%

Abe's total revenue:

At Webs-R-Us, a website design company, the new manager has decided to increase the price of Webs-R-Us services by 15%. She estimates that the price elasticity of demand for Webs-R-Us is 0.30.

The manager expects the number of websites designed to:

Increase or Decrease

by _________%

and total revenue to:

Increase

Decrease

Not change