A movie theater reduces ticket prices from \$12 to \$10, and the number of tickets sold increases from 300 to 400. What is the effect on total revenue, and what does this indicate about demand elasticity?

• A. Total revenue remains unchanged, indicating unit elastic demand
• B. Total revenue increases, indicating elastic demand
• C. Total revenue decreases, indicating elastic demand
• D. Total revenue decreases, indicating inelastic demand

Answer: (B)