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Your Natick Mall Boutique was planning for revenue to be $200,000 next month, but your store's manager decided to decrease prices by an average of 8%

Economics

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Your Natick Mall Boutique was planning for revenue to be $200,000 next month, but your store's manager decided to decrease prices by an average of 8%. Your consultants tell you this price change will likely create a 10% increase in quantity demanded. Select all the true statements.

A) Total revenue is likely to go down relative to the plan.

B) Total revenue will likely go up relative to the plan

C) Price elasticity is -1.25