I need the answer and explanation to the first question and then I need the explanation for the 2nd question which is linked to the first question.

Question 1:

Suppose the value of the price elasticity of demand is -3. What does this mean?

Select one:

a. A $1 increase in price causes quantity demanded to fall by 3 units.

b. A 1 percent increase in the price of the good causes quantity demanded to increase by 3 percent.

c. A 3 percent increase in the price of the good causes quantity demanded to decrease by 1 percent.

d. A 1 percent increase in the price of the good causes quantity demanded to decrease by 3 percent.

Question 2:

If the percentage increase in price is 15 percent and the value of the price elasticity of demand is -3, then quantity

demanded

Select one:

a. will increase by 5 percent.

b. will decrease by 5 percent.

c. will decrease by 45 percent.

d. will increase by 45 percent.