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Suppose the value of the price elasticity of demand is -3. What does this mean? Question 1 options: A) A $1 increase in price causes
Suppose the value of the price elasticity of demand is -3. What does this mean?
Question 1 options:
A)
A $1 increase in price causes quantity demanded to fall by 3 units.
B)
A 3 percent increase in the price of the good causes quantity demanded to decrease by 1 percent.
C)
A 1 percent increase in the price of the good causes quantity demanded to increase by 3 percent.
D)
A 1 percent increase in the price of the good causes quantity demanded to decrease by 3 percent.
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