The Honolulu Tourism Commission Proposed a 6 Percent Tax on Hotel

The Honolulu tourism commission proposed a 6 percent tax on hotel rooms to pay for an outdoor amphitheater. A Purdue University economist estimates that the tax would result in a 6 percent increase in the price of hotel rooms. If the elasticity of demand is 1.33, what is the expected change in quantity demanded?

A) 12.5 percent
B) −12.5 percent
C) 8 percent
D) −8 percent