Equilibrium displacement model predicts price change using the formula %P = [Sd Ss]/[Es Ed], where Sd represents the shift in demand in terms of percentage, Ss represents the shift in supply in terms of percentage, Ed is the price elasticity of demand, and Es is the price elasticity of supply. Suppose that the USDA estimates that because of COVID-19, the supply of chicken will decrease by 20% in the third quarter of this year while the demand for chicken would remain the same. The USDA also reports that in the second quarter of this year the elasticity of demand for chicken was -0.50 (negative 0.80) and the elasticity of supply of chicken was 0.50. If the average price of chicken in the second quarter of this year was $2/lb, what would be the predicted price of chicken in the third quarter of this year?

A$1.6/lb.

B$2.0/lb.

C$2.4/lb.

D$3.0/lb.