16. We know the following:

   A quick look at the choices reveals that we need to figure out what will happen to revenues as a result of this price increase.

   We know that %Q = -0.20 x %P. Therefore, an increase in price of 100% ($1 to $2 using our simple formula) will lead to a drop in sales of 20%, meaning sales will fall from 1,000 iguanas shipped to 800.

   If it costs $2 to ship an iguana and 800 are shipped, total revenue from iguana shipments will be $1,600; an increase of $600 from before the price increase.

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