Which of the Following Is True of a Good That

Multiple Choice

Which of the following is true of a good that has a price elasticity of demand of −3?

A) If the income of a consumer increases by 3 percent, the quantity demanded of the good will increase by 1 percent.
B) If the income of a consumer increases by 1 percent, the quantity demanded of the good will increase by 3 percent.
C) If the price of the good increases by 1 percent, the quantity demanded of the good will decrease by 3 percent.
D) If the price of the good increases by 3 percent, the quantity demanded of the good will increase by 1 percent.