When ShorTech introduced its Quadrant mobile phone, it had few competitors and so it set a price of $500 when its unit cost was $400

When ShorTech introduced its Quadrant mobile phone, it had few competitors and so it set a price of $500 when its unit cost was $400. The economics consulting firm it hired to estimate the demand elasticity confirmed this was the optimal price. Since then, other competitors have entered the market making customers more price conscious. When it rehired the economics consulting firm to estimate the demand elasticity, it found that demand had become more elastic at -4.5. Also, ShorTech eked out cost savings and now has a unit cost of $300. What price should ShorTech charge now? Explain and show your work.