For product X, the price elasticity of demand has an absolute value of 3.5. This means that quantity demanded will increase by
A. 3.5 units for each $1 decrease in price, ceteris paribus.
B. 1 percent for each 3.5 percent decrease in price, ceteris paribus.
C. 1 unit for each $3.50 decrease in price, ceteris paribus.
D. 3.5 percent for each 1 percent decrease in price, ceteris paribus.
Answer: D
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?Figure 3.7Refer to Figure 3.7. A decrease in demand is represented by the movement
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