Problem
(Categories of Price Elasticity of Demand) For each of the following values of price elasticity of demand, indicate whether demand is elastic, inelastic, perfectly elastic, perfectly inelastic, or unit elastic. In addition, determine what would happen to total revenue if a firm raised its price in each elasticity range identified.
a. ED = 2.5
b. ED = 1.0
c. ED = ∞
d. ED = 0.8
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.