Blossom, Inc., sells 900 bottles of perfume a month when the price is $10. A huge increase in resource costs forces Blossom to raise the price to $12, and the firm only manages to sell 750 bottles of perfume. Using the midpoint formula, the price elasticity of demand coefficient is
A)1 and elastic.
B)1.4 and elastic.
C)1 and unit elastic.
D)1.67 and elastic.

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The Answer of Blossom, Inc., sells 900 bottles of perfume a month when the price is $10. A huge increase in resource costs forces Blossom to raise the price to $12, and the firm only manages to sell 750 bottles of perfume. Using the midpoint formula, the price elasticity of demand coefficient is
A)1 and elastic.
B)1.4 and elastic.
C)1 and unit elastic.
D)1.67 and elastic.