Boatsman Company's Management Believes That Every 4% Decrease in the Selling

Multiple Choice

Boatsman Company's management believes that every 4% decrease in the selling price of one of the company's products would lead to a 7% increase in the product's total unit sales. The product's variable cost is $14.20 per unit.
-The product's price elasticity of demand as defined in the text is closest to:

A) -2.29
B) -2.24
C) -1.31
D) -1.66