Multiple Choice
Suppose the value of the price elasticity of demand is -3.This means that________.
A) A 1 per cent increase in the price of the good causes quantity demanded to increase by 3 per cent.
B) A 1 per cent increase in the price of the good causes quantity demanded to decrease by 3 per cent.
C) A 3 per cent increase in the price of the good causes quantity demanded to decrease by 1 per cent.
D) A $1 increase in price causes quantity demanded to fall by 3 units.
Correct Answer:
Verified
Correct Answer:
Verified
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