The Only Producer of Chocolate Bunnies in the World, Choco's

Multiple Choice

The only producer of chocolate bunnies in the world, Choco's Bunny Company, recently expanded its production capacity from 1,000 to 2,000 bunnies per day.If the price elasticity of demand for bunnies is 3.33, by how much will the company need to reduce its price to sell the additional 1,000 bunnies (using the midpoint method) ?

A) 2.5%
B) 25%
C) 125%
D) 20%