When the Price of Cosmopolitan Magazine Decreases from $5 to $3

Multiple Choice

When the price of Cosmopolitan magazine decreases from $5 to $3, the quantity demanded increases from 600,000 to 1,000,000 copies each month. Using the midpoint method, the price elasticity of demand equals

A) 1.
B) 1/2.
C) 1/3.
D) 2.
E) 3.