The marketing department of an independent provider of high-speed fiber broadband services has calculated that its service has a price elasticity of demand (PED) equal to -0.6. This suggests that if the provider raises the monthly subscription fee, then:
the quantity demanded will fall by 60%60\%60%.
total consumer spending on the service will decline.
total consumer spending on the service will increase.
the quantity demanded will rise by 60%60\%60%.
