As the manager at Chums Ltd you are asked to propose the ideal price for their luxury shampoo. The sales director estimates that to achieve sales of 3 400 units the price would be R310 per unit. However, the factory has capacity to supply 2 800 units per year and this would be the preferred level of sales. Through research it was established that for every increase of R10 in price 200 units less would be demanded.

Given the information above, by calculating the Price Elasticity of Demand indicate whether a price of R200 would increase sales dramatically.?