The CEO of a firm producing computer peripherals is considering lowering the prices of two of its products. The CEO is between lowering the price for the computer keyboard or the cordless mouse. Last time prices were lowered, a 4 decrease in price for the 30 keyboard resulted in a growth in keyboard sales from 150 thousand to 200 thousand per month. A 5 decrease in the price of the 34 cordless mouse increased sales from 80 to 150 thousand cordless mouses per month.

(a) find the price elasticity of demand for the computer keyboard (show all calculations).

(b) find the price elasticity of demand for the cordless mouse (show all calculations).

(c) Which product should he choose to put on sale? Explain your answers with reference to the elasticity calculations in (a) and (b) above AND the application of the total revenue test.