Answer:
B) False
Explanation:
Since the price elasticity of demand is -1.3, it is considered elastic. That means that a 10% decrease in the price will result in a 13% increase in total quantity sold.
E.g. original price = $100, quantity demanded = 100 trees, total revenue = $10,000
price decreases by 10% to $90, but the quantity demanded increased by 13% to 113 trees, total revenue = $10,170
