Suppose you are a retailer selling DVDs. Your current selling price is $20, and the demand is 1000 units.

Case 1: If you decrease your price to $15, your new demand is 1500 units

a). Calculate Elasticity
b). Calculate Revenue
c). Relationship of revenue and elasticity

Case 2: If you decrease your price to $15, your new demand is 1100 units instead of

a). Calculate Elasticity
b). Calculate Revenue
c). Relationship of revenue and elasticity