Suppose That a Local Dry Cleaner Shop Faces a Demand

Multiple Choice

Suppose that a local dry cleaner shop faces a demand curve that is liner and that the current price for its garments is set at a point where the price elasticity of demand is 1.7.If the local dry cleaner shop increases the price per garment,demand becomes ________ elastic and total revenue ________.

A) less; decreases
B) more; decreases
C) less; increases
D) more; increases