Allen Corporation's Vice President in Charge of Marketing Believes That

Multiple Choice

Allen Corporation's vice president in charge of marketing believes that every 8% increase in the selling price of one of the company's products would lead to an 11% decrease in the product's total unit sales. The product's absorption costing unit product cost is $10.70. The variable production cost is $1.50 per unit and the variable selling and administrative cost is $4.40 per unit.
-The product's price elasticity of demand as defined in the text is closest to:

A) -1.06
B) -1.96
C) -1.51
D) -1.81