26. In the Barron's article titled "Retail Turkey Isn't Cooking", the author writes: "The tight supplies, which are expected to last well into next year, are mainly due to declining production as farmers, walloped by a spike in grain prices in 2009, cut back. Production was down 10% in 2010, leaving fewer birds this year, and it is down another 2% so far this year [2011]. As a result, wholesale turkey prices in the third quarter [of 2011] hit a record high of 97.9 cents a pound, up more than 20% from the prior five-year average of 79.9 cents a pound". With wholesale prices increasing by 20% and output or production and hence consumption decreasing 12%, assuming all other variables constant, the Price Elasticity of Demand for turkeys wholesale is [using the simple arc method; not the midpoint method] :

a. 0.08

b. 0.60

c. 1.20

d. 1.35

e. 1.67