You Are the Only Seller of Eggs in Town, and the Price-Elasticity

Multiple Choice

You are the only seller of eggs in town, and the price-elasticity coefficient for eggs is known to be 0.5. If you want to increase your sales quantity by 6 percent through a price change, what should you do to the price?

A) reduce price by 12 percent
B) increase price by 12 percent
C) reduce price by 3 percent
D) increase price by 3 percent