George has been selling 4,000 T-shirts per month for $7.50. When he increased the price to $9.50, he sold only 3,000 T-shirts.

Which of the following best approximates the price elasticity of demand?

A.-1.0929

B. -1.4571

C. -1.3357

D. -1.2143

Suppose George's marginal cost is $6 per shirt.

Before the price change, George's initial price markup over marginal cost was approximately.

A. 0.18

B. 0.2

C. 0.22

D. 0.3

George's desired markup is

A. 0.8235

B. 1.2353

C. 0.7412

D. 0.9059

Since George's initial markup, or actual margin, was

A. Less

B. Greater

than his desired margin, raising the price was.

A. Profitable

B. Not Profitable