For the first time in two years, Big G (the cereal division of General Mills) raised cereal prices by 4 percent. If, as a result of this price increase, the volume of all cereal sold by Big G dropped...

For the first time in two years, Big G (the cereal division of General Mills) raised
cereal prices by 4 percent. If, as a result of this price increase, the volume of all cereal
sold by Big G dropped by 5 percent, what can you infer about the own price elasticity
of demand for Big G cereal? Can you predict whether revenues on sales of its Lucky
Charms brand increased or decreased? Explain. (LO1, LO3)