1. For the first time in two years, Big G (the cereal division of General Mills) raised cereal prices by 2 percent. If, as a result of this price increase, the volume of all cereal sold by Big G dropped by 3 percent, what can you infer about the own price elasticity of demand for Bug G cereal? Can you predict whether revenues on sales of its Lucky Charms brand increased or decreased? Explain.

Please provide calculations.