The market for chocolate bars is dominated by several companies including Cadbury, Mars, and Lindt. When Cadbury reduces the price of its Caramello Koalas from $1.40 to $1.30, there is observed to be a relatively larger percentage increase in the quantity of Caramello Koalas consumed compared to the percentage decrease in price.

Which of the following statements is true?

1. Demand must be upward sloping.

1. The price elasticity of demand for Caramello Koalas will have a value larger than 1 when their price is $1.40

1. The price elasticity of demand for Caramello Koalas at a price of $1.40 is less than 1.

1. 1% increase in the price of Caramello Koalas from $1.40 would lead to a greater than 1% increase in the quantity demanded.

1. A 1% increase in the price of Caramello Koalas from $1.40 would lead to a greater than 1% increase in quantity demanded.

1. None of the above are correct.