Jaime owns a monopoly business selling sweatshirts. The demand for her product is given by: Q = 1600 20P. She is currently selling sweatshirts at P = $40. What is the price elasticity of demand at this price? You will have to use the point elasticity formula. The price elasticity of demand at this price is ___________

Consider your answer to the previous question. If Jaime wants to increase the revenue received by her firm, what should she do?

Group of answer choices

She should raise the price of her sweatshirts

She should lower the price of her sweatshirts

She is already maximizing her revenue and should not change her prices