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Dunkin cuts price of a small vanilla latte from $2.25 to $1.75. Daily sales of small vanilla lattes increased from 3750 per day to 4250

Dunkin cuts price of a small vanilla latte from $2.25 to $1.75. Daily sales of small vanilla lattes increased from 3750 per day to 4250 per day. Using arc elasticity formula, which of following is the best estimate of the price elasticity of demand :

1. -2

2. -0.75

3. -0.5

4. -0.2

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