The price elasticity of demand for DVD players manufactured by Sony of Japan is greater than one. If the Japanese yen appreciates against the U.S. dollar by 10% and the price of the Sony DVD players in the U.S also rises by 10%, then other things equal, the total dollar sales revenues of Sony DVDs would:

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The price elasticity of demand for Sony DVD players being greater than one implies that a 10% increase in price will result in a more than 10% decrease in demand. As the price of DVD players in the U.S is also increasing by 10%, this will lead to a reduction in demand for Sony DVD players in the U.S. Therefore, the total dollar sales revenues of Sony DVDs would decline.

The Price Elasticity of Demand for DVD Players Manufactured by Sony