Answer:
a. the demand for bottled water is elastic in the price range considered.
Explanation:
A decrease in supply while demand remains unchanged would lead to an increase in equilibrium price and a fall on equilibrium quantity.
If revenue falls as a result of a decrease in price, it indicates that demand fell as a result of the increase in price. This indicates that demand is sensitive to changes in price. This means demand is price elastic. When prices increased, consumers reduced the quantity demanded and revenue fell as a result.
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