Revenue from Mobile Phones. Consider the demand for mobile phones. Suppose the price elasticity of demand for the market as a whole is 0.80. a. If all mobile-phone companies simultaneously increased...

Revenue from Mobile Phones. Consider the demand for mobile phones. Suppose the price elasticity of demand for the market as a whole is 0.80.

a. If all mobile-phone companies simultaneously increased their prices, will total revenue in the industry increase or decrease?

b. If a single mobile-phone company increased its price, would you expect the company’s total revenue to increase or decrease? Explain.