"The Department of Agriculture Came Out Today with Its Prediction

Multiple Choice

"The Department of Agriculture came out today with its prediction for food price next year-4 to 5 percent increases on top of this year's already steep gains… Eggs, dairy products and cereals are up 10 percent... But the USDA says another big part of the American diet has seen only moderate price increases. Beef, poultry and pork will be up only 3 percent this year." Suppose the price elasticity of demand for beef is elastic. Consumption would then

A) decrease by greater than 3 percent.
B) increase by greater than 3 percent.
C) decrease by less than 3 percent.
D) increase by less than 3 percent.