单选题 If the price of product X increases from $2.00 per unit to $ 2.25 per unit, the demand will decrease from 7.5 million units to 6.7 million units. What is the price elasticity of demand for the product, and is the demand for the product elastic or inelastic?

A、

A. -1.04; elastic.
B、

B. -0.96; elastic.
C、

C. -0.96; inelastic.

【正确答案】 C

【答案解析】 The percent changes are generally calculated relative to the midpoint of the change.

Demand for the good is inelastic since, ignoring the sign, the price elasticity is ＜1.