Larissa Is a Famous Attorney with a Great Reputation in Court

Multiple Choice

Larissa is a famous attorney with a great reputation in court. She charges her clients $300 for each hour she spends working on their cases. If she earned $450,000 in hourly wages last year, and by raising her rates to $350 per hour her income increased to $490,000 what can we say about the elasticity of demand for Larissa's legal services?

A) It is approximately equal to 2.3.
B) It is approximately equal to 1.6.
C) It is approximately equal to 1.0.
D) It is approximately equal to 0.45.
E) It is approximately equal to 0.1.