Figure 4 shows a firm’s demand (D) curve and its marginal revenue (MR) curve for good X. The firm initially sells OQ$_1$ units of X per day at a price of OP$_1$.
If the firm increases its price by 10%

1 )
price elasticity of demand will decrease.
2 )
price elasticity of demand will not change.
total revenue will decrease.
4 )
total revenue will increase.
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