Block's sells 500 bottles of perfume a month when the price is $7. A huge increase in resource costs causes price to rise to $9 and Block's only manages to sell 460 bottles of perfume. The price elasticity of demand is:
A. 3.0 and elastic.
B. 0.33 and elastic.
C. 3.0 and inelastic.
D. 0.33 and inelastic.
Answer: D
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