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.