April Runs a Small Bakery in Northern Minnesota

Multiple Choice

April runs a small bakery in northern Minnesota.Her most popular item is her homemade cranberry scone.As a pricing experiment,April raises the price of her raspberry scones by 5 percent and sees daily sales fall by 2 percent.From this experiment,April can estimate the price elasticity of demand for her cranberry scones as approximately ________.

A) 0.4 percent
B) 2 percent
C) 2.5 percent
D) 5 percent