If a 27 percent increase in the price ofCap'n Crunch cereal causes a 15 percent reduction in the number of boxes of cerealdemanded, what is the price elasticity of demand forCap'n Crunchcereal?_________. (Enter a numeric response using a real number rounded to two decimalplaces.)

The demand forCap'n Crunch is inelastic/unit - elastic/elastic

As a result of the priceincrease, what will happen to Total Revenue forCap'n Crunch?

A.

TR will decrease.

B.

TR will increase.

C.

TR will remain the same