Suppose the elasticity of demand for your parking lot spaces, which are located in a downtown business district, is -1, and the price of parking is $11 per day. Additionally, suppose that your MC is zero, and the lot is just about full by 9 AM each day over the last month.

Since demand is , and the lot is at capacity, is the optimal pricing strategy.

A) elastic, inelastic, unit elastic

B) increasing price, leaving the price unchanged, decreasing price