Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 3

Problems 7 and 8 refer to the demand schedule shown in Table 4P-1. For each price change, say whether demand is elastic, unit-elastic , or inelastic , and say whether total revenue increases, decreases , or stays the same.

Price decreases from $70 to $60. Demand is ______ and total revenue _______.