Question 17: The absolute value of the Price elasticity of demand (Sd) for Good A=475, the arc elasticity measured betweza bure specie points marting of the relevant range of the Beer total demand funcion (D4) for Good 4 The absolute value of the Price elasticity of demand (d) for Good B=0.50, with the arc elasticity measured between mo specific points marking off the relevant range of the linear toe! demand function (D) for Good B. If a firm producing good A increases price along the relevant range of the total demand function D'7) for Good A: a) b The monetary loss from producing and selling fewer units exceeds the monetary gain of the price change, and thus total revenue decreases. The monetary loss from producing and selling fewer units exceeds the monetary gain of the price change, and thus total revenue increases. c) d) The monetary gain from producing and selling more units exceeds the monetary loss of the price change, and thus total revenue decreases. The monetary gain from producing and selling more units exceeds the monetary loss of the price change, and thus total revenue increases. There is no relation between the magnitude of Epd and total revenue. e) Question 18. Tu

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