In a local theatre, 2000 tickets can be sold in a week when the price of a movie is set at $10 week. According to market research, Ed (price elasticity of demand) is 0.8. Now the management of the theatre has decided to raise the price of a movie to be $12.

(The formula of Ed is for your reference.)

37) The weekly demand of tickets is going to __________.

A)             decrease by 10%

B)             decrease by 12%

C)      decrease by 14%

D)      decrease by 16%

E)      decrease by 18%

38) The weekly revenue is going to __________.

A)             decrease by $260

B)             have no change

C)      increase by $160

D)      increase by $260

E)      increase by $360