3. Assume the price elasticity of demand E = 2.05, when the unit price of the product is set at p = $30. Interpret the meaning of this result. Choose the correct answer. A. When the price of the item is $30 the demand is increasing 2.05% per 1% increase in unit price. B. When the price of the item is $30 the demand is dropping 2.05% per 1% increase in unit price. C. The unit price of the item is dropping $30 per 1% increase in demand. D. The demand is dropping 2.05% per every $30 increase in unit price. E None of the above