The average price of the HQ printers Model M currently is $295. The annual demand for these printers is 3.0 million units. The manufacturer is considering to raise prices by $20 .

Answer the following questions.

a. If the price elasticity of demand is 5.6, what would be the change in annual demand for these printers?

Group of answer choices

decrease by 940,000

decrease by 1,171,000

increase by 1,139,000

decrease by 1,139,000

b. What is the new annual demand?

Group of answer choices

1,229,000

4,139,000

1,660,000

1,861,000