Suppose that ABC Beer Brewer faces a linear demand curve and that the current price for its beer is set at a point where the price elasticity is 0.6. If ABC Beer Brewer increases the product price, then the total revenue will:
A. increase if at the new price, the elasticity is still lower than 1.
B. increase regardless of the size of the price increase.
C. decrease regardless of the size of the price increase.
D. increase if at the new price, the elasticity is greater than 1.
Answer: A
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Indicate whether the statement is true or false