The own price elasticity of demand for a subscription to the HBO channel is -1.5. One of the managers at HBO suggests increasing the price of subscription.
Which one of the following statements is true?
Group of answer choices
When the price increases, total revenue will increase, since demand is price inelastic.
When the price increases, total revenue will increase, since demand is price elastic.
When the price increases, total revenue will decrease, since demand is price elastic.
When the price increases, total revenue will decrease, since demand is price inelastic.