Your sales team reported that the price-elasticity of demand for your brand of coriander is –1.9. You are considering increasing the price of your coriander by 4.02%. This will cause which of the following?
(Recall: Elasticity = % change in Quantity/% change in Price)

Question

Your sales team reported that the price-elasticity of demand for your brand  of coriander is –1.9. You are considering increasing the price of your  coriander by 4.02%. This will cause which of the following? 
 (Recall: Elasticity = % change in Quantity/% change in Price)

Answer

The quantity of coriander you sell will decrease by approximately 7.64% and revenue will  increase

Answer

The quantity of coriander you sell  will increase by approximately 7.64% and your revenue  will increase

Answer

The quantity of coriander you sell will decrease by approximately 7.64% and revenue will  remain unchanged

Answer

The quantity of coriander you sell will decrease by approximately 7.64% and revenue will  decrease

Answer

The quantity of coriander you sell  will not be impacted

Crowdly

Your sales team reported that the price-elasticity of demand for your brand of ...

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