The price elasticity of demand for Lenovo computers is estimated to currently by -3. Assuming that this estimate is correct, which of the following is true?

The price elasticity of demand for Lenovo computers is estimated to currently by -3. Assuming that this estimate is correct, which of the following is true?





A. Total revenue from the sale of its computers will increase this year if Lenovo raises its prices this year
B. If Lenovo lowers the price of its computers, the total revenue from sale of its computers will decrease this year
C. There will be no effect on its total revenue from the sale of its computers this year if Lenovo lowers its prices
D. If Lenovo lowers the price of its computers, the total revenue from the sale of computers will increase this year




Answer: D