Widgets are normally sold for $10 per unit. At that price, a store sells 1000 widgets per week. If after a 20% increase in price, only 840 widgets are sold. Calculate the following.

i. The price elasticity of demand for widgets

ii.

The Total Revenue before and after the price increase.

Before: ___________________

After: ___________________

iii. In this example, is the demand for widgets elastic?