An end-of-aisle price promotion changes the price elasticity of a good from 2 to 3. Suppose the normal price is $16, which equates marginal revenue with marginal cost at the initial elasticity of -2.

What should the promotional price be when the elasticity changes to -3? (Hint: In other words, what price will equate marginal revenue and marginal cost?)

$15.60

$16.80

$10.80

$12.00