For Product XYZ, the Price Elasticity of Demand Has an Absolute

Multiple Choice

For product XYZ, the price elasticity of demand has an absolute value of 3.5.This means that quantity demanded will increase by

A) 1 percent for each 3.5 percent decrease in price, ceteris paribus.
B) 1 unit for each $3.50 decrease in price, ceteris paribus.
C) 3.5 percent for each 1 percent decrease in price, ceteris paribus.
D) 3.5 units for each $1 decrease in price, ceteris paribus.