George has been selling 7,000 T-shirts per month for $7.50. When he increased the price to $9.50, he sold only 5,000 T-shirts.

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

-1.4167

-1.8417

-1.5583

-1.275

Suppose George's marginal cost is $3 per shirt.

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

Since George's initial markup, or actual margin, was than his desired margin, raising the price was .