During the Height of the Pet Rock Craze in the 1970s

Multiple Choice

During the height of the pet rock craze in the 1970s, the price elasticity of demand was estimated to be 1.20.Since pet rocks have a marginal cost of zero, a profit-maximizing seller of pet rocks would

A) increase prices.
B) decrease prices.
C) leave prices unchanged.
D) need more-detailed market information before making any pricing changes.
E) diversify into selling Karen Carpenter LPs.