For each of the following cases, what is the

expected impact on the total revenue of the firm?

Explain your reasoning.

a. Price elasticity of demand is !mown to be -0.5,

and the firm raises price by 10 percent.

b. Price elasticity of demand is !mown to be -2.5,

and the firm lowers price by 5 percent.

c. Price elasticity of demand is !mown to be -1.0,

and the firm raises price by 1 percent.

d. Price elasticity of demand is !mown to be 0, and

the firm raises price by 50 percent.