1. A company currently sells 60,000 units a month at $10 per unit. The marginal cost per unit is $6. The company is considering raising the price by 10% to $11. If the price elasticity of demand is _______________ in that price range, then profit would increase if the company decided to raise the price by 10%.

a. equal to 3

b. greater than þ1

c. less than 2.5

d. greater than or equal to 2