Answer the Following Questions Using the Information Below

Multiple Choice

Answer the following questions using the information below:
Ernie Shavers, Inc. manufactures electric shavers and is considering decreasing the price by $3 a unit for the coming year. With a $3 price decrease, the unit demand is expected to increase by 25%, and a high volume materials discount is expected to decrease the variable costs per unit by $1 per unit.

-The demand for this product is:

A) elastic
B) slightly inelastic
C) greatly inelastic
D) indeterminable