Part 1. (3pts) . ABC estimated its price elasticity of demand to be -0.9, given this estimate, how should ABC change their prices to raise their total revenues? Why? Show all your work. Explain using the relevant graphs or equations. Your explanation determines your grade.

Part 2. Suppose the price of a product that consumers consider to be a substitute to ABC's product decreases. Explain how this would affect the equilibrium price of ABC's products, if any and why. Show all your work. Explain using the relevant graphs or equations. Your explanation determines your grade.