Sailright Inc. manufactures and sells sailboards. Management believes that the price elasticity of demand is -3.0. Currently, boards are priced at $500 and the quantity demanded is 10,000 per year. Show all work in your answers.
a. If the price is increased to $600, how many sailboards will the company be able to sell each year?
b. How much will total revenue change as a result of the price increase?