Final answer:
A one percent increase in price will decrease total revenue for products with a price elasticity greater than 1. In the scenario provided, this occurs for products C and D because they have elasticities of 1.75 and 2.42, respectively.
Step-by-step explanation:
The price elasticity of demand measures how much the quantity demanded of a good responds to a change in the price of that good. If the price elasticity is greater than 1, the demand is considered elastic, meaning consumers are sensitive to price changes. Conversely, if the elasticity is less than 1, the demand is inelastic, meaning consumers are not very sensitive to price changes. A one percent increase in price will decrease total revenue (TR) for products with an elasticity greater than 1, which in this case applies to products C and D with elasticities of 1.75 and 2.42, respectively.
Since products A and B have price elasticities of demand of 0.56 and 0.92, which are less than 1, a one percent increase in price is likely to increase or not significantly change total revenue because the quantity demanded does not decrease significantly. However, for products C and D, the change in quantity demanded will be larger than the change in price, leading to a decrease in total revenue when prices increase.