Ted's Trailers sells horse trailers in a competitive market. The variable costs of producing the one-horse trailer are $850 per unit. Information from prior years indicates that a 10% increase in the trailer's selling price results in a 15% decrease in customer demand. Calculate the price elasticity of demand and the profit-maximizing price for the one-horse trailer. The following values may be useful: In (0.2) = -1.609 in (1.1) = 0.09531 In (0.5) = -0.693 In (0.8) = -0.223 In (0.85) = -0.16252 Ted's price elasticity of demand is: O A. -1.609 OB. 0.16252 OC. -1.70516 OD.-0.9531