The Price Elasticity of Demand for Furniture Is Estimated at 1.3

Multiple Choice

The price elasticity of demand for furniture is estimated at 1.3. This value means a one percent increase in the

A) price of furniture will increase the quantity of furniture demanded by 1.3 percent.
B) price of furniture will decrease the quantity of furniture demanded by 1.3 percent.
C) quantity of furniture demanded will decrease the price of furniture by 1.3 percent.
D) quantity of furniture demanded will increase the price of furniture by 1.3 percent.