You Are the Manager of a Mom and Pop Store

Multiple Choice

You are the manager of a Mom and Pop store that can buy milk from a supplier at $2.00 per gallon.If you believe the elasticity of demand for milk by customers at your store is −3,then your profit-maximizing price is:

A) $1.33.
B) $2.75.
C) $3.00.
D) $4.50.