When a university bookstore prices chemistry textbook at


When a university bookstore prices chemistry textbook at $200 each, it generally sells 120 books per month. If it lowers the price to $160, sales increase to 160 books per month. Given this information, we know that the price elasticity of demand for chemistry books is about

A. 1.29, and a decrease in price from $200 to $160 results in an increase in total revenue.

B. 1.29, and a decrease in price from $200 to $160 results in a decrease in total revenue.

C. 0.78, and a decrease in price from $200 to $160 results in an increase in total revenue.

D. 0.78, and a decrease in price from $200 to $160 results in a decrease in total revenue.

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Business Economics: When a university bookstore prices chemistry textbook at
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