If a price elasticity of demand is said to be 1.8 for your firms biggest product, and your firms marketing manager has asked to raise the price of this product by 5%, what would be your advice to the firms CEO as their chief financial analyst? (Assume demand curve is normally sloped.)

		a. Raising the price will cause a 2.78% drop in quantity demanded, our sales will rise overall.
		b. Raising the price will cause a 2.78% rise in quantity demanded, our sales will rise overall.
		c. Raising the price will cause a 9% drop in quantity demanded, our sales will drop overall despite the rise in prices.
		d. Raising the price will cause a 9% gain in quantity demanded, our sales will rise significantly.