If the price elasticity of demand is 3,this means that a 1% increase in quantity demanded will cause a 3% decrease in the price of the good.

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Quizplus · Accepted Answer

The statement is incorrect. If the price elasticity of demand is 3, it means that a 1% decrease in price will cause a 3% increase in the quantity demanded, and vice versa. It does not indicate the relationship between a 1% increase in quantity demanded and a 3% decrease in price.

If the Price Elasticity of Demand Is 3,this Means That