Cost Plus Pricing $2*$

COST PLUS PRICING. $($This question plus the next $2$questions$)$

You have demand for $2$ products:

QA$=1501\mathrm{.}5*$PA

And

QB$=2002*$PB

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You anticipate selling $60$ units of each product.

You have to mark$-$up your two products to cover an unexpected increase in overhead costs.

Based on the cost$-$plus pricing procedure we did in class, answer this question plus the next question.

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Which comes closest to the price elasticity for Product B$?$

Multiple Choice

$-1\mathrm{.}50$

$-1\mathrm{.}80$

$-2\mathrm{.}00$

$-2\mathrm{.}30$