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Question
Refer to the accompanying table. The price elasticity of demand of erasers is ________ when the price is lowered from $1.50 to $1.00. Sellers of erasers will ________ their total revenue from this price change.
| Price of Erasers | Quantity Demanded of Erasers | Quantity Demanded of Pencils |
| $0.50 | 10 | 12 |
| $1.00 | 8 | 11 |
| $1.50 | 7 | 10 |
| $2.00 | 6 | 9 |
| $2.50 | 5 | 8 |
a. perfectly elastic; not change
b. elastic; raise
c. elastic; lowerh
d. inelastic; lower
e. inelastic; raise
Answer
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