If the price elasticity of demand for a good is 1/2, then a 12 percent decrease in the price of that good _______________ the quantity demanded by __________ percent.*

A. Decreases; 6

B. Increases; 6

C. Decreases; 24

D. Increases; 24

E. Increases; 12

1. The price elasticity of demand for gasoline is 0.2. What happens to the gas station's total revenue when the price increases by 15%?*

A. It increases.

B. It decreases.

C. It stays the same.

D. More information is needed.