If the Cross Elasticity of Demand Between Beef and Bison

Multiple Choice

If the cross elasticity of demand between beef and bison is 1.5, then a 3 percent increase in the price of beef will lead to

A) a 4.5 percent increase in the quantity of bison demanded.
B) a 4.5 percent decrease in the quantity of bison demanded.
C) a 2 percent increase in the quantity of bison demanded.
D) a 2 percent decrease in the quantity of bison demanded.
E) a 0.5 percent increase in the quantity of bison demanded.