A subscription to the music streaming site Pandora costs $4 a month, and they currently have 6 million subscribers. From market research, they know they can raise the price to $6 and lose 1 million members. From this data, solve for the elasticity of demand, and indicate whether this is an elastic or inelastic demand.

a. |Ed| = 2.2; elastic

b. |Ed| = 2.2; inelastic

c. |Ed| = 0.5; elastic

d. |Ed| = 0.5; inelastic

e. |Ed| = 1; unit elastic

Which is the correct answer?