In 2016, Philadelphia Imposed a Tax of 1

Multiple Choice

In 2016, Philadelphia imposed a tax of 1.5 cents per ounce on sweetened beverages, and PepsiCo indicated that its sales in Philadelphia fell by 40 percent after the tax took effect.If the demand for sweetened beverages in Philadelphia is unit elastic, then the price of Pepsico's sweetened beverages in Philadelphia would have increased by ________ percent following the implementation of the tax.

A) < 40
B) 40
C) > 40
D) The price would not have changed if demand was unit elastic.