The Cozy Chair Company Believes It Can Sell 200 Chairs

The Cozy Chair Company believes it can sell 200 chairs at $200 per chair or 300 chairs at $150 per chair. Using the midpoint formula, what do they think is the price elasticity of demand?

A) 2.5.
B) 1.4.
C) 0.7.
D) 0.5.