Blossom, Inc

Multiple Choice

Blossom, Inc., sells 500 bottles of perfume a month when the price is $7. A huge increase in resource costs forces Blossom to raise the price to $9, and the firm only manages to sell 460 bottles of perfume. Using the midpoint formula, the price elasticity of demand coefficient is

A) 0.33 and elastic.
B) 3 and elastic.
C) 0.33 and inelastic.
D) 3 and inelastic.